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THE 

FRANKLIN 

COVER-UP 



Child Abuse, Satanism, and 
Murder in Nebraska 



by John W. DeCamp 

Ebook by HappyTribe 



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To the children who have been, 

or will be, abused because of 

the Franklin cover-up. 



Second edition 1996 

© 1992 AWT, Inc. 

ISBN: 0-9632158-0-9 

Library of Congress Catalog Number: 92-070074 

First Edition: 

First printing, May 1992 
Second printing, August 1992 
Third printing, February 1994 

Second Edition: 

First printing, December 1996 
Second printing, January 2001 
Third printing, January 2005 
Fourth printing, February 2006 



AUTHOR'S NOTE 

I have brought out this new, special 200412005 edition of The 
Franklin Cover-Up because the story and its implications continue 
to have exploding effects upon the American political and social 
landscape. In the years since the first copies of The Franklin Cover- 
Up hit the streets, not only have I and others learned far more about 
the Larry King political sub-culture of drugs and child abuse and the 
horrors of child abuse committed and covered-up by certain members 
of the Catholic clergy, but the circulation of The Franklin Cover- 
Up throughout the United States has brought many new cases to 
my doorstep. 

And, one after another. I have become involved as attorney on 
one side or the other in these startling cases-from Columbine to 
the Oklahoma Bombing; from MY first-of-its-kind lawsuit against 
any Catholic Diocese for covering up .child abuse by priests to today, 
when it seems every day brings a new revelation about the abuse 
and use of children by clergy. What I was condemned for saying 15 
years ago, when the first edition of The Franklin Cover-Up first came 
out, is now shouted from the rafters of the churches and POLITICAL 
HALLS across the United States. AND THE ABUSES ARE BEING 
CORRECTED. 

When this book first came out, it was the first to open the ugly 
side of many of these issues-and I was certainly condemned by 
many for doing so. In fact, I was so threatened because of that first 
book that I had to move my entire family to a small town of 300 
people, Clatonia, Nebraska, where I felt I had more security and 
neighbors to help watch out for and protect my children. That move 
has worked out fine for me. And my children are the greatest ever. 

I wish I COULD DROP THIS ISSUE ENTIRELY, but I have too 
many daily, weekly calls from folk all over America asking for help 
or guidance or information or direction on their particular problems. 
Hence, I thought the best way to answer them was to make this book 
available to them with current updates. That is part of what I have 
tried to do in this 200412005 edition of The Franklin Cover-Up. 

I have never spent one penny advertising or promoting this book. 
However, whatever caused it, it has sold well over 110,000 (One 
Hundred Ten Thousand) copies. Hopefully, it will do some good for 
some and give courage to others to Fight Back and Tell the Truth. 

John DeCamp 

December 2004/January 2005 . . . May God be with you. 



2004/05 UPDATES AND DEVELOPMENTS 
SINCE FIRST FRANKLIN COVER-UP EDITION 



In late 2003, Troy Boner walked into a hospital in New Mexico 
screaming, "they're after me, they're after me because of this book." 
The book Troy was waving was this book, The Franklin Cover- 
Up. Boner was . . . mildly sedated and calmed down . . . and put in 
a private room for 'observation.' " When nurses came to check on 
him early next morning, Boner was sitting in a chair, bleeding from 
the mouth and quite dead. Former FBI Los Angeles Bureau Chief 
Ted Gunderson tried to get autopsy and other information and details 
that were promised him on Boner's death, but Gunderson, and appar- 
ently every other entity, were totally shut out of all information. No 
news stories on Boner's death were published in the news, despite 
Boner's previous front page fame and "notoriety" in the Franklin case. 



Developments on INDIVIDUALS & ENTITIES named in The 
Franklin Cover-Up: 

WARREN BUFFET, has become the second wealthiest human on 
planet earth, at $35 Billion, second only to Bill Gates. LARRY KING 
was recently released from prison and is now in Washington, D.C., 

Duh, big surprise, huh? DECAMP is trying to collect the million 

dollar judgment he won against Larry King but Larry claims he 
"... has no money." JOHN KERRY & BOB KERREY both tried to 
become President and George W. Bush became President. JOHN 
KERRY claimed he knew of horrible atrocities done in Vietnam but 
JOHN DECAMP helped establish in 2001, 2002, 2003 that Lt. Bob 
Kerrey was the officer in charge who ordered slaughter of 25 unarmed 
women & children at place called Thanh Phong in Vietnam, for 
which Kerrey was decorated under claim that these had been armed 
Viet Cong soldiers. DeCamp returned to Vietnam in 2001 and met 
with the "survivors of the Thanh Phong massacre" and was asked to 
help them. DeCamp directly contacted both Senators Bob Kerrey and 
John Kerry to look into the matter and see if they were willing to 
help out these survivors. BOTH JOHN KERRY AND BOB KERREY 
REFUSED to do anything. 



Catholic Church and many clergy members have been sued success- 
fully in lawsuits identical to DeCamp's first lawsuit against the 
Church. DeCamp's suit first showed Americans the very serious 
problem with abuse and cover up of the abuse throughout the United 
States by members of the Catholic clergy. 

Boys Town and the Archdiocese of Omaha have now also been 
named in multiple lawsuits for the identical activities that DeCamp 
alleged in his 1991 lawsuit, which, as stated, was the first of its kind 
in America to open and expose this abuse cesspool. 

FINAL COMMENT & UPDATE: I have become involved in a 
number of super high profile cases since First Edition of Franklin 

Cover-Up came out but, perhaps the most frightening to me 

has been the COLUMBINE case where I represented various victims 
of the massacre and/or their families. 

I believe as a result of those cases I am the only lawyer to have taken 
the depositions of the Harris boy's mother & father, and I am one 
of the only victims' lawyers to have seen certain Columbine materials 
and tapes. I have reached certain conclusions on Columbine which 
I feel obligated to put into print here in hopes it will some day make 
a difference. 

More court action has been done to keep everything secret and destroy 
the depositions than anything 1 have seen in my 40 years of court 
activity. SO, for my own personal and LEGAL safety and protection, 
let me say simply that everything-absolutely everything-1 say here 
is simply MY OPINION AND BELIEF and not done to violate 
any court orders or sealed records. But say these OPINIONS and 
BELIEFS. I MUST. 

1. I believe the first crime committed at Columbine was the slaugh- 
ter of the children (Harris and Klebold's classmates) by Harris 
and Klebold. 

2. lust as surely I do believe the second "crime" of Columbine 
has been the continuing and strong suppression of the informa- 
tion and evidence by the Legal System which keeps parents 
and the public from really ever knowing the truth-or at least 
having a real opportunity to make judgments as to what the 
truth is, by having available all the information from which to 
make judgments. 



I believe-as sure as I believe anything on this earth-the claim 
I made IN A LAWSUIT IN FEDERAL COURT in which I 
alleged, on behalf of the Columbine children, that the Harris 
boy's actions, including PARTICULARLY AND ESPE- 
CIALLY HIS FINAL ACT OF SUICIDE, were caused or 
influenced to occur by the antidepressant drugs he was 
taking. 

Remarkably enough, within a year or so after I dropped out of 
this lawsuit and the lawsuit was dismissed by the Federal Judge, 
IT BECAME PUBLIC INFORMATION AND KNOWLEDGE 
THAT CERTAIN OF THESE ANTIDEPRESSANTS DO IN 
FACT CAUSE SUICIDAL BEHAVIOR, PARTICULARLY 
IN CHILDREN AND TEENAGERS, AND NOW THIS FACT 
MUST BE PUT ON THE DRUGS WHEN THEY ARE SOLD 
OR PRESCRIBED TO CHILDREN. But, of course when I 
had this lawsuit going, none of this information was public 
knowledge BUT WAS ALL DENIED by the drug companies. 
And, one of these days-SOON-when I get a legal comfort 
level to do so without getting punished by the legal system I 
intend to BLOW IT OUT ALL STRAIGHT ON THE REAL 
COLUMBINE TRUTHS. 



TABLE OF CONTENTS 



Foreword 



IX 



jPART I 



Introduction 



xvn 



Chapter I.| "Nebraska Is Death-Laced" 



Chapter 2 



Chapter 3. 



Chapter 4 



Chapter 5 



Chapter 6 



Chapter 7 



Chapter 8 



Chapter 9. 



Chapter 10 



Chapter II. 



Chapter 12. 



Chapter 13. 



Larry King, a Man Well-Known 

to Children 5 

Pornography and Ritual Murder 15 

Cover-up Phase I: The Police 25 

Just How Big Is This Cover-up? 33 

The Destruction of Commonwealth 

Savings, Model for Nebraska 38 

The Franklin Committee 53 

"Somebody Has to Tell the Story" 67 

The DeCamp Memo 85 

Paul Bonacci 100 

Cover-up Phase II: The Douglas 

County Grand Jury 106 

The Omaha Business Community 129 

The Washington Connection 164 



THE FRANKLIN COVER-UP 



Chapter 14.| Cover-up Phase III: The FBI 



Chapter 15.| Kathleen Sorenson's Story 



Chapter 16.| Four Fighters Who Didn't Quit 



Chapter 17.| "So That the Truth Would Never 
Come Out" 



Appendix A.| Fifteen Suspicious Deaths 



Appendix B.| Bobby and Me 



182 

201 

214 

224 
250 
252 



IPART II 



Introduction 



Chapter 18. 



Chapter 19 



Chapter 20 



Chapter 21 



Chapter 22 



Chapter 23 



Chapter 24 



The Franklin Investigation, and 
Cover-Up, Continue 

Four Years Later-Where Are 
They Now? 

Troy Boner Steps Forward 

Drugs and the Monarch Project 

From Montana to Oklahoma City 

The Oklahoma Bombing- 
The Real Story 

The U.S. Justice Department Murder 
of Gordon Kahl 



Chapter 25.| In Memoriam: Bill Colby 



Epilogue 



About the Author 
Index 



277 

280 

300 
305 
320 

332 

343 

348 
377 
390 
394 
"397 



VIII 



FOREWORD 



"What do Ronald Reagan, President George Bush, fanner CIA 
Director William E. Colby, Democratic presidential candidate 
Bob Kerrey, billionaire and second richest man in America and 
now head of Salomon Brothers-Warren Buffett, and Ronald 
Roskens, the current administrator of the Agency for Interna- 
tional Development, all have in common?" I asked my close 
friend and adviser William Colby one day in 1991. 

"I give up," fanner head of the Central Intelligence Agency 
(CIA) Colby said. "What could that group have in common?" 

"Three things," I replied, "all of them a burden at times for 
those who have to carry them. The three things are me (John 
DeCamp), a case called Franklin and a man named Larry 
King." 

"Are you serious?" Colby asked. 

"Dead serious," I responded. "And I hope that word 'dead' 
does not turn out to be a prophetic pronouncement, as it has 
for at least fifteen other Franklin-related personalities." 

My statement to Bill Colby was not made lightly. Colby 
and his wife, Sally Shelton Colby, a United States ambassador 
under President Jimmy Carter, were at that very moment warn- 
ing me to get away from the Franklin child abuse investigation, 
Larry King, and anybody else linked with Franklin, as quickly 
as possible for the sake of my own life and safety. 

Sally and Bill had never talked to me like this before. They 
sat me down, made it clear that this was not one of our routine 
discussions about life and health and happiness, and empha- 
sized to me the serious nature of what and whom I was deal- 
ing with. 

"What you have to understand, John, is that sometimes there 



IX 



THE FRANKLIN COVER-UP 



are forces and events too big, too powerful, with so much at 
stake for other people or institutions, that you cannot do any- 
thing about them, no matter how evil or wrong they are and 
no matter how dedicated or sincere you are or how much 
evidence you have. That is simply one of the hard facts of life 
you have to face. You have done your part. You have tried to 
expose the evil and wrongdoing. It has hurt you terribly. But 
it has not killed you up to this point. I am telling get out 

of this before it does. Sometimes things are just too big for us 
to deal with, and we have to step aside and let history take its 
course. For you, John, this is one of those times," Bill warned, 
with Sally nodding her head in affirmation. 

When a caution of this nature comes from someone of the 
stature and experience of Bill or Sally Colby, you have to take 
it seriously, even if you do not want to. I had already had 
warnings enough, that unless I backed off from the Franklin 
situation, I might be looking at life from a pine box six feet un- 
derground. 

Bill Colby had ample reason to know the seriousness of the 
Franklin case. In secret, Colby had been hired a few months 
earlier by the Nebraska Legislature's investigative committee, 
to look into the single-engine plane crash, in which the Senate's 
private investigator, Gary Caradori, and his son were killed. 

"But Bill," I argued, "somebody has to do something. The 
problem here is that our institutions of government have been 
corrupted. If there is a cover-up-and I now absolutely believe 
there is, even though originally I thought this whole Franklin 
story had to be a fantasy-then that cover-up can only take 
place with the cooperation and even the active assistance of 
some of our key institutions of government, from the courts 
to the cops, from the highest politicians, to the media representa- 
tives, to the wealthiest business leaders of our community 
and country. 

"I can't believe what you are telling me, Bill. Are you saying 
I should just lay it down, and walk away from this, when I 
know kids are being abused and killed; when I know our most 
respected citizens and business leaders are up to their eyebrows 
in drug dealing and official corruption; when every bone in 



FOREWORD 



my body tells me that evil is triumphing and everybody who 
is anybody is scared beanless to do something about it, for 
fear of one thing or another? How can any honest or intelligent 
person do this? If I, or someone like me, do not keep pursuing 
this, then who will? And if we quit now, then when, if ever, 
will the truth come out and something be done about this evil 
and this corruption?" 

Bill could tell I was excited, frustrated and almost angry. 

"Relax, just a moment, John," he said. "Relax, and I will 
tell you my own personal story. Maybe it will have some 
message for you. 

"Last night I returned from Russia," Bill began. 

Our conversation was taking place shortly before the now 
infamous August 19, 1991 coup attempt to throw out Gorba- 
chov, and the subsequent collapse of the Soviet Union as it 
had existed since 1917. 

"Why was I in Russia?" Bill explained. "For meetings in 
Moscow, to try to work with other world leaders and Russian 
leaders, privately and quietly, so that when and if a transition 
of power and a change of government and economic policy 
occur in Russia, they occur in such a way that it avoids a war. 

"I was staying at a hotel located right near Red Square 
which, as you know, is the most guarded, sacred spot in the 
Soviet Union. It was about 1:00 in the morning. I could not 
sleep. The next morning I was to return to the United States. 
Not being able to sleep, I thought I would see if it was possible 
to walk around and get some exercise. 

walked out of my room, expecting to be stopped by the 
guards or secret police. But nobody paid attention to me in the 
hallway. I walked on down into the hotel lobby. Nobody seemed 
to care. 

"So, I walked out the door of the hotel, directly onto Red 
Square. Nobody paid attention. I stopped by Lenin's tomb. I 
stood a few feet away from the entrance to the Kremlin. 

"Then it struck me like a ton of bricks: It was over. Here 
was the head of the CIA, once hated and feared by the Soviet 
Union, wandering unwatched and unguarded around Red 
Square, after spending the previous week meeting with their 



XI 



THE FRANKLIN COVER-UP 



leaders, trying to help them save themselves from economic 
collapse and political revolution, which might turn into a new 
totalitarian dictatorship. And nobody cared. The guards did not 
care who I was or what I was doing. The system had collapsed. 
It was over. Communism was dead. That was the happy part." 

Bill went on, quietly, "But I also realized, that this walk in 
Red Square was going to be the only victory parade I would 
have, to celebrate my forty-year battle for this. There were not 
going to be any parades down Madison Avenue with ticker 
tape. This walk in Red Square was the only victory parade I 
was going to have." 

"So, what's the message?" I asked. "What are you trying 
to tell me?" 

"Sometimes," Bill said, "There are forces too powerful for 
us to whip them individually, in the time frame that we would 
like. We have to keep working at our goal. But we have to 
be sensible enough, not to risk everything and get ourselves 
destroyed or killed in the process. That victory we seek may 
take much longer than we wanted, and come in ways we 
never anticipated. 

"Maybe, just maybe, you have to have your own private 
victory parade. You maybe have to face the fact that you cannot 
'right' all the 'unrightable wrongs.' That there really are people 
too powerful, interests too that the rich and the powerful, 

even when doing evil, can and will succeed and you can do 
nothing about it at that moment. 

"But," Bill continued, do the possible, recognize the 

impossible, and if you are right-and you are, and we both 
know it-there will be a time when victory will come and the 
good will triumph over the evil. Only the when and where and 
how are usually unknown to us. The best we might be able to 
do sometimes, is point out the truth and then step aside. That 
is where I think you are now. For your own safety and survival, 
step aside." 

"Maybe I should start carrying a gun," I suggested. 

Bill gave a cynical laugh and said, "No, that will only likely 
get you killed. If they are going to get you, a gun you are 
carrying is not going to stop anything. The best thing you can 



XII 



FOREWORD 

do for your personal safety is to tell your story, and make sure 
you have the national press interested in this and looking into 
it with some really good investigative reporters." 

"Huh," I muttered, "Maybe the simplest thing for me to do 
is to try to tell the story." 

"Maybe it is," Bill said, "Besides, I myself want to fully 
understand what you said at the beginning about what all those 
prominent individuals, from President Bush to Bob Kerrey, 
from myself to billionaire Warren Buffett, have in common." 

"Maybe I'll have to write a book, and tell you, won't I, Bill?" 

Well, here it is. 



XIII 



PART I 



INTRODUCTION 



On June 21, 1991, 21 -year-old Alisha Jahn Owen was pro- 
nounced guilty by a jury in Douglas County, Nebraska, on 
eight counts of felony perjury. On August 8, 1991, she was 
sentenced to serve nine to twenty-seven years in prison. Owen 
was indicted for telling a grand jury, before which she testified 
in 1990, that she was sexually abused as a juvenile, by a 
Nebraska district court judge, by the chief of police of the city 
of Omaha, by the manager of the Franklin Community Federal 
Credit Union, and others. Alisha Owen also witnessed, she said, 
the abuse of other children by figures in Nebraska's political and 
financial establishment whom she named, among them the 
publisher of the state's largest newspaper, the Omaha World- 
Herald. She testified that she was in a group of Nebraska 
children who functioned for years as illegal drug couriers, 
traveling nationwide, for some of Nebraska's wealthiest, most 
powerful and prominent businessmen. 

Two grand juries, one local and one federal, had a mandate 
to consider these and other charges of child abuse connected 
with the Franklin Credit Union. They indicted the victim-wit- 
nesses for perjury instead! 

"This is unprecedented, probably in the history of the United 
States," commented Dr. Judianne Densen-Gerber, a lawyer, 
psychiatrist and nationally prominent specialist on child abuse, 
during her visit to Nebraska in December 1990. " If the children 
are not telling the truth, particularly if they have been abused, 
they need help, medical attention. You don't throw them in 
jail!" 

Both grand juries admitted that Alisha Owen and Paul Bo- 
nacci, whose testimony extensively corroborated Owen's, had 



XVII 



"rHE FRANKLIN COVER UP 



been badly abused. But this was done, they concluded, by 
persons other than those the young people named. Bonacci, too, 
was indicted for perjury. Two other victim-witnesses, whose 
stories buttressed those of Owen and Bonacci, recanted under 
immense pressure. Alisha Owen and Paul Bonacci refused 
to recant. 



America is suffering an epidemic of child abuse. "S.O.S. 
America," a 1990 report from the Washington, D.C. -based 
Children's Defense Fund (CDF), said that "a survey by the 
American Association for Protecting Children indicates that 
2.2 million children were reported abused, neglected, or both 
in 1987-a 225 percent increase since 1976, and a 48 percent 
increase in the previous five years." CDF and other estimates 
caution, however, that only one in every five cases of abuse 
and neglect gets reported. "The dimensions of the abuse are 
staggering," Dr. A. Nicholas Groth, director of the sex offender 
program at the Connecticut Correctional Institute, told the New 
York Times in 1990, "If we saw these same numbers of children 
suddenly developing some kind of illness, we'd think we had 
a major epidemic on our hands." 

Shocking as the numbers are, the nature of the crimes is more 
so. Ever more frequently, abuse involves what law enforcement 
officials refer to as "sadistic, ritualistic" features, or, to speak 
plainly, satanism. What the victims of this type of abuse de- 
scribe is so horrific, that parents, teachers, and even child 
welfare workers have great difficulty to grasp what they are 
being told. The mind recoils from such evil, inflicted on the 
most innocent of all people, children. 

In recent months, news media around the country have been 
full of propaganda to the effect that children who report abuse 
are just telling what they fantasized, or stories fed to them by 
adults. As for satanic or ritualistic abuse, many newspapers 
declare that it does not even exist, as the New York Village 
Voice did in a June 1990 article, which attacked "the great 
ritualistic hoax. " 



INTRODUCTION 



A banner-headline story in the Chicago Tribune of May 17, 
1991, "A chilling tale of child abuse no one can prove," gave 
typical coverage of the debate over whether or not children 
are being abused by satanists: 

All nine children tell the same story, a grisly tale of being 
taken out of school and abused in a blue house. They name 
the same culprit, a school administrator who performs satanic 
rituals as part of his twisted routine. In the 14 months since 
the first child came forward, police said they have conducted 
150 interviews and cannot substantiate the claims of the 
children, who range in age from 5 to 9. Prosecutor Stanley 
Levco is more blunt: He doesn't believe them, and he plans 
to publicly clear the accused. 

But the children's enraged parents believe them. And 
a once-skeptical psychologist also thinks they are telling 
the truth. 

All agree the children have been traumatized. The prob- 
lem is, no one can prove how. 'In all these cases, I don't 
know of a single shred of credible, corroborating evidence,' 
Levco said. ... ' ' 

The stories of the Evansville children reflect a recent, 
bizarre trend in child abuse cases across the country. As 
more children are encouraged to step forward and expose 
adults who hurt them, police are encountering more cases 
of child abuse accompanied by allegations of occult rituals. 

The Tribune cited Kenneth Lanning, the Federal Bureau 
of Investigation's expert on occult crime, on the virtual non- 
existence of ritualistic abuse. Lanning, who has publicized his 
opinion that "more people have been killed in the name of 
Jesus and Mohammed than in the name of Satan," said on this 
occasion, that there had "been only one criminal conviction 
stemming from charges of satanic ritual abuse in the U.S." 

On April 28, 1991, the Omaha World-Herald earned a story 
along these lines, titled "Satanism ... Lots of Talk, Little 
Proof." It said that the problem was not an epidemic of satanic 
abuse, but rather, "authorities say, America is witnessing an 
epidemic of concern over Satan and his minions, especially 
among adherents of fundamentalist Christianity. So-called rit- 



THE FRANKLIN COVER UP 



ual abuse is only part of it. But are these stories of incest and 
human sacrifice true? Many mental health experts think not. 
And at least two law enforcement officers, with the FBI and 
the San Francisco police, say they have looked into some of 
the claims and found nothing." (Emphasis added.) 

An embattled minority of law enforcement officials disagrees 
with Lanning of the FBI. Ted Gunderson, a 28-year FBI veteran, 
former special agent-in-charge of the Bureau's Los Angeles 
Field Division, speaks from his personal knowledge of one of 
the most infamous recent cases involving ritual abuse, the 
McMartin pre-school case in California. After a 33-month 
trial, and despite voluminous evidence against them, school 
operators Peggy McMartin Buckey and her son, Raymond 
Buckey, were exonerated in January 1990 on 52 counts of 
molesting the children in their care, while the jury failed to 
reach a verdict on thirteen other counts against Raymond 
Buckey. 

In a May 25, 1990 interview with Executive Intelligence 
Review, Gunderson said, "In the McMartin case, for example, 
before any criminal charges were filed against anyone, 460 
complaints were filed with the Manhattan Beach police. Are 
we to believe that 460 families fed their children the same 
story of ritualistic sexual abuse, animal sacrifices, etc.?" He 
stressed that the crimes were reported in an affluent suburban 
area, where residents are typically skeptical about organized 
child abuse or satanic conspiracies. 

Gunderson commented on the effect of Lanning's disclaim- 
ers: "In my opinion, other than [satanists active in the United 
States in the twentieth century] Aleister Crowley, Anton LaVey , 
and Michael Aquino, Ken Lanning is probably the most effec- 
tive and foremost speaker for the satanic movement in this 
country, today or any time in the past." 

Evidence from Gunderson's investigations has convinced 
him that tens of thousands of children or young people disappear 
from their homes each year, and that many are ritually sacri- 
ficed. A decade ago, one estimate, printed in Reader's Digest 
in July 1982, was that "approximately 100,000 children are 
unaccounted for" each year. That number sounds too high, but 



INTRODUCTION 

nobody knows what the true figure is, because the FBI does 
not keep count. Gunderson observes: 

"The FBI has an accurate count of the number of automobiles 
stolen every year. It knows the number of homicides, rapes, 
and robberies, but the FBI has no idea of the number of children 
who disappear every year. They simply do not ask for the 
statistics. Every month, every major police department in the 
United States files its uniform crime statistics with the FBI. It 
would be simple for the bureau to add one more column to 
the statistics and get a breakdown of every reported case of 
missing children-not to even mention children who are 
kidnaped for ritualistic purposes, and, in some cases, murdered. 
I am convinced that the FBI does not ask for these statistics 
because they do not want to see them. They would be confronted 
with an instant public outcry for action, because the figures 
would show a major social problem. That problem would de- 
mand action." 



The Franklin Credit Union scandal, centered in Omaha, 
opens a window into the hideous world of child abuse, and of 
organized, illegal drug peddling, patronized and protected by 
powerful figures in politics and business. 

National media interest in the case flickered in 1988, when 
the Franklin Community Federal Credit Union was raided by 
federal agencies and shut down. Franklin's manager was Law- 
rence E. (Larry) King, Jr., then 44, a rising star in state and 
national Republican circles, an officer of the National Black 
Republican Council. King sang the national anthem at the GOP 
national conventions in 1984 and 1988. 

Nearly $40 million was missing from the coffers of the 
small, ostensibly community-oriented credit union. The finan- 
cial scandal turned into something more, when it became known 
that children from Omaha and its surroundings said they had 
been flown from city to city, to be abused at parties held 
by Franklin's officers and well-known Nebraskans, including 
nationally prominent Republican Party activists. "A Lurid, 



THE FRANKLIN COVER UP 



Mysterious Scandal Begins Taking Shape in Omaha," head- 
lined the New York Times. 

Three years later, people living outside eastern Nebraska 
are unlikely to be aware of the Franklin scandal, and those in 
the region have been told that the case is closed. Larry King 
is serving his jail term for misappropriation of funds, after a 
guilty plea. Law enforcement at the local, state and federal 
levels said there was no evidence of drug-peddling, organized 
child abuse, or satanic activity by King. The allegations of 
child abuse were "a carefully crafted hoax," according to one 
of the two grand juries that examined the affair. A chief witness, 
Owen, stands convicted of perjury. 

The day after Alisha Owen's conviction, 3,000 Nebraskans 
responded to a local radio station's poll; 94% of them said 
they believed that she had been railroaded and that there was 
a cover-up. 

What the public suspects, the careful investigator of the 
Franklin case confronts face to face. This case is far from 
closed. 

This book will explore the substance of the Franklin case, 
much of which has never been revealed to the public until now. 
That means evidence concerning key players, which apparently 
was never brought before, or was ignored by, the grand juries. 1 1 
means evidence gathered for the Nebraska Legislature's special 
committee on the Franklin case, which found and verified the 
tracks of criminal activity, where law enforcement purported 
to see none. The legislative investigation, which began in 
November 1988, ended on January 9, 1991, when a new Legis- 
lature was sworn into office, and the investigative committee 
authorized by the previous Legislature was automatically termi- 
nated as required by the state constitution. The Legislature had 
the option to renew the investigation, but did not; many 
members knew or suspected what the stakes were, and were 
terrified. 



I write about the unfolding of the Franklin case, its exposure 
and its cover-up, as not only an eyewitness, but a participant 



INTRODUCTION 



in these events. I knew how high Larry King's reach went; I 
was sitting in the front row, just fifteen feet from the main 
podium, at the 1984 and 1988 Republican national conventions, 
duly elected by the people of the State of Nebraska as a delegate, 
pledged, in the first instance, to Ronald Reagan and, in 1988, 
to George Bush. 

I was there, as the story of the Franklin Credit Union and 
the child abuse broke in Nebraska. I wrote the "DeCamp memo" 
in 1990, which marked a new phase of the case. I will describe 
events in which I personally was involved. Most of these have 
never been made public, and it has pained me tremendously 
at times, when I knew that the Omaha World-Herald was saying 
something false or distorting a fact, that I had no forum or no 
legal right to respond, because I had to protect a client or honor 
a legal privilege. 

As an attorney, furthermore, I have some specialization in 
cases of allegations by youngsters against adults in the area of 
child abuse. It has been my policy and belief, as it is now, that 
there is nothing worse than child abuse, with the possible 
exception of falsely accusing people of child abuse. Just in 
the past year, I have overturned two felony charges against 
individuals in rural Nebraska, who were charged with abusing 
their daughters, based on allegations from the daughters. I was 
convinced the girls were not telling the truth. I successfully 
proved this in both cases, and the girls broke down and told 
the whole story as to why they had lied. 

In addition, I am the lawyer for the National Child Abuse 
Defense and Resource Center of Nebraska, which fights against 
false accusations of child abuse, and is made up of adults who 
have been falsely accused of child abuse. 

By contrast with these cases of fantasy, I can say without 
reservation that in one Franklin-related instance after another, 
there was sufficient evidence and corroboration available for 
anyone seeking it, to back up the victims' tales. 

My own recollections and considered judgments are just a 
fraction of the huge record of the Franklin case. 

The files of the Legislature's main investigator, the late Gary 
Caradori, testify to the mass of leads law enforcement would 



XXIII 



THE FRANKLIN COVER UP 



not pursue. Documentary evidence presented in this book, 
never before made public, makes it possible to contrast the 
assurances of local and state officials that there was little or 
no Franklin-related abuse, with what those agencies had in 
their own files. 

The chapters of this book dealing with Franklin are based, 
apart from my direct experience, strictly on documents avail- 
able and documented facts. I do not claim to know the accuracy 
or veracity of every statement made by every witness or other 
person, recorded in these documents. I do claim, however, 
that the statements and the evidence were officially presented 
exactly as described. Readers can draw their own conclusions, 
as to what is or is not believable. 

I have been very careful to present only material and docu- 
ments which I can legally and properly, in my opinion, 
make available. 

I also must state, that I received none of the Franklin commit- 
tee documentation from the committee's chairman, Senator 
Loran Schmit, other than what I was entitled to as attorney for 
Paul Bonacci. Some people inevitably will claim, as they did 
when I issued the DeCamp memo in January 1990, that Senator 
Schmit, whose private attorney I am, "leaked" everything to 
me. I said then, and I say now, that nothing could be further 
from the truth. 

Neither is anything whatsoever from grand jury docu- 
ments-some of which I had access to-presented here, be- 
cause I am not allowed to disclose this information. I wish I 
could. I wish everything about Franklin could be made public. 
Then, the public could judge even more thoroughly about what 
is true and what is false. I believe that sunshine and exposure of 
all facts from all agencies that have information about Franklin 
would establish the truth of the stories of drug abuse, child 
abuse, pedophilia, abuse of positions of public trust, cover-up 
by institutions of government, and, most tragic, involvement 
in this conduct and later cover-up by some of our most respected 
and wealthiest citizens. 

I believe that the record must get out into the open, to the 
extent possible, and that the public has to share the information. 



INTRODUCTION 



Otherwise, truth becomes whatever those who control the insti- 
tutions of government, and the press, say it is. Benjamin Frank- 
lin said, "Whoever would overthrow the liberty of a nation 
must begin by subduing the freeness of speech." For a textbook 
example of how this can be done, I would say: Come to Ne- 
braska! Watch how when you totally control the press, when 
you own the press, you can make truth be whatever you want, 
you can make villains out of heroes, sinners out of saints, and 
vice versa. 

In this book, therefore, much of the material has been kept 
in its documentary form-the words of investigators, state 
senators, victim-witnesses, parents, police, or FBI, as recorded 
in police documents, eyewitness reports, testimony to the Legis- 
lature, published interviews, and so on. I will allow these docu- 
ments to speak for themselves. 

Spelling and punctuation have been left as they appear in 
documents, except for minor punctuation changes in transcripts. 
Interpolations in quoted material are denoted by brackets []. 
When the name of a victim or other person is not his or her 
real name, it is marked with an asterisk the first time it appears. 



The Franklin case, which has dominated political life in 
Nebraska for three years, has chilling implications for.the whole 
United States. The unfinished business of the investi- 

gation is a matter not only of justice for children in one state, 
but of the lives of untold numbers of children everywhere. 
Evidence developed from Franklin and King's activities leads 
into drug-trafficking, money-laundering, pornography, child 
prostitution, and the kidnaping and sale of children in different 
parts of the United States, and abroad. 

The shocking treatment of Alisha Owen and Paul Bonacci 
by the courts in Nebraska is one give-away, of what a high 
stake has been wagered on suppressing the Franklin scandal. 
Members of the state Senate and investigators who sought to 
discover the truth of the matter, found that out earlier on, in 
a personal, violent manner. 



XXV 



CHAPTER 



"NEBRASKA IS 
DEATH-LACED" 



"If even half of what I have heard is true, this is the biggest 
thing to ever hit Nebraska," Gary Caradori told his wife, Sandie, 
late one night in August 1989. Although he was exhausted, the 
new chief investigator for the Nebraska Legislature's Franklin 
committee did not sleep that night. There was more cause for 
sleeplessness in the weeks that followed. 

On September 14, 1989 someone broke into the Cara- 
doris' home. 

By January 1990, Caradori was writing to Nebraska Secre- 
tary of State Alan Beerman, "We-my employees and my- 
self-have been followed and questionable situations have 
arisen during this investigation. Threatening situations have 
resulted numerous times. Why? Am I too close to something 
they do not want to become public?" 

On April 13, 1990, a repairman from the Executone company 
reported to Caradori that his phone was tapped, a finding con- 
firmed to him by sources inside the phone company. 

The investigator continued to work, with a growing sense 
of the importance of his task.On May 29, 1990 Caradori wrote 
to Franklin committee chairman Loran Schmit. "To be frank," 
he told the senator, "it is my opinion that we are the only ones 
who are seriously working to get this case 'out in the open,' 
so to speak. I honestly feel that should we terminate this investi- 
gation that no further work will be done on it." 

On June 23, 1990, Caradori took a few hours off to attend 
a barbecue at the Omaha home of Mary Lyons-Barrett. Most 
of those present were members of the Concerned Parents, a 



THE FRANKLIN COVER-UP 

group of citizens who were outraged about the lack of a serious 
investigation of child abuse by state or federal authorities, 
and the campaign in Nebraska's major newspaper, the Omaha 
World-Herald, to discredit young victim-witnesses. Arriving 
in a 1980 white Corvette, Caradori told Concerned Parents 
president Trish Lanphier he had taken the car out of storage 
for the day's drive, because his other vehicles had been tam- 
pered with, and he was "sure that no one had ever seen that 
car." He was planning to sell his boat for the same reason, but 
what he most feared, he told Lanphier, was that someone would 
tamper with the private plane he often flew. "It would be so 
easy to tamper with a plane." 

In early July 1990, Caradori phoned Senator Schmit. "We've 
got them!" he exclaimed about some new evidence he hadjust 
developed. "There's no way they can get out of it now!" He 
and his son Andrew ("A. J.") would be flying to Chicago for 
the All-Star Game the weekend of July 7-8, he told Schmit. 
Caradori was going to do a little investigating on the side and 
would review the new evidence with the senator, upon his 
return the following Wednesday. 

On that Wednesday morning, July 11, 1990, Senator Schmit 
was in his office, talking with a journalist about the Franklin 
investigation. He related the numerous threats received by him- 
self and Caradori, and Caradori's evaluation of those threats. 
"It's unlikely that they would kill you or me, Loran, because 
that would be too obvious," Gary had said once, "But then 
again, you never know." 

At about 10:30 a.m., Senator Schmit took a phone call. He 
listened for a moment, appeared shaken, and said, "Oh, my 
God, no!" After asking a few questions, he hung up, tears in 
his eyes. "Gary's dead." 

It happened at 2:30 a.m. on July 11, when Gary and AJ. 
were flying back to Lincoln, Nebraska from Chicago. A farmer 
in Lee County, Illinois reported that he saw a flash of light, 
heard an explosion, and saw a plane plunge to the ground. The 
Caradoris were killed, the plane's wreckage scattered over 
three-quarters of a mile. The eyewitness account of a flash of 



"NEBRASKA IS DEATH-LACED" 



light and an explosion was on the early edition of television 
news in Nebraska, but got pulled from subsequent reports, 
which said that the plane exploded on impact. 

At the Nebraska statehouse that morning, Senator Schmit 
talked to reporters, who soon filled his office. "There were a 
lot of people in this state who wanted to see Gary dead," he 
charged. "They got their wish. The question to be answered 
is whether it was a coincidence." 

Gary's brother Dick Caradori was interviewed by the Lincoln 
Journal about the many threats Gary had received. "I know 
that it weighed a lot on his mind," Dick said. "He always hoped 
that they just didn't cover it up. He said there was a lot to it 
and a lot of big names involved and hoped their money wouldn't 
sweep it under the rug." Gary's mother, Mary, told the paper 
that Gary "cared dearly about the people involved in the Frank- 
lin case. He worked day and night for them." 

Sandie Caradori never received official notification of her 
husband's and son's deaths. She heard the news from friends, 
who heard it on the radio. Early the next day, before the bodies 
were even home from Illinois, the FBI descended on Caradori' s 
office with a subpoena for all his records. 

What evidence had Caradori turned up? According to the 
Lincoln Journal the day after Caradori's death, "Schmit con- 
firmed that Gary Caradori had been trying to obtain pictures 
that some alleged victims said were taken of them during the 
period when they were being abused. He also confirmed that 
Caradori had been told that some of those allegedly involved 
in child sexual abuse 'had exposed some of the victims to 
satanic cultism. He was working on places and times.' " He 
was also working on leads into Washington, D.C. 

Mystery surrounded not only the crash of the airplane, but 
Caradori's whole trip. Gary and A.J. had stayed at the Days 
Inn Lakefront Motel in Chicago, where both his wife and his 
associate Karen J. Ormiston had telephoned, asked for him by 
name, and spoken with him (their phone bills showed the calls), 
but motel management would tell Caradori's investigative firm 
there was no record of his ever having stayed there. And if 



THE FRANKLIN COVER-UP 



there was no record that Caradori had registered at the motel, 
there was also no record of what phone calls he might have 
made from Chicago. 

After months of investigation, the National Transportation 
Safety Board had not come up with the cause of the crash. My 
friend Bill Colby, former director of the CIA, commented after 
he looked into the matter, that the cause would probably never 
be known. Mary Caradori rendered her own verdict on the deaths 
of Gary and AJ.: "My son and grandson were murdered." 

Many Nebraskans echoed her opinion. They have growing 
grounds for suspicion. From late 1988, when the Franklin case 
first broke into public view, until mid-1991, at least 15 people 
associated with the case as investigators, alleged perpetrators, or 
potential witnesses, died sudden deaths, many of them violent. 

In December 1990, as Dr. Densen-Gerber prepared to travel 
to Nebraska at the request of the Legislature's Franklin commit- 
tee, she consulted several friends with relevant expertise. One 
of them was a member of the New York State Police, who 
warned her, "Don't go. Nebraska is death-laced." 

Caradori's death cast a pall of terror over the state. Civil 
rights leader Rev. James Bevel, who visited Nebraska in Octo- 
ber 1990 as part of a fact-finding commission, said that he had 
never seen such terror on people's faces, "not even on the faces 
of Mississippi Negroes in the 1950s and 1960s," who lived 
under the threat of lynchings by the Ku Klux Klan. 

In this atmosphere, Douglas County and federal grand juries 
indicted victim-witnesses Alisha Owen and Paul Bonacci. The 
Senate Franklin committee went out of existence on January 9, 
1991. On June 21, 1991, Alisha Owen was found guilty, and 
Douglas County prosecutors dropped the charges against Paul 
Bonacci. As far as the Nebraska political establishment was con- 
cerned, the door on the Franklin case was slammed shut for good. 

Thousands of Nebraska citizens are concerned that what Gary 
Caradori uncovered not go with him to the grave. The story of 
the Franklin Credit Union investigation is intertwined with the 
systematic cover-up that investigation confronted, from the time 
of the first cries for help from children six years ago. 



CHAPTER 2 



LARRY KING, A MAN 

WELL-KNOWN TO 
CHILDREN 



The first alarm went off on June 10, 1985, when the Washington 
County, Nebraska, Sheriffs Department contacted a Nebraska 
Department of Social Services (DSS) social worker handling 
the case of Sean*, Sally* and Steve McArthur*. The children 
were living in foster care with Jarrett and Barbara Webb of 
Fort Calhoun. 

The social worker wrote up the call: 

The Sheriffs department phoned today and stated they have 
the McArthur children in their custody and they had picked 
them up from the Webb home due to child abuse complaint. 
Sean had welts and scratches over parts of his back which 
he said the Webbs had beat him with a railroad iron and 
belt. They also had picked up the Webbs' son Joey*, age 
16. Joey also complained of being beaten by his parents. 
. . . Sean said the Webbs have been beating [them] for quite 
some time and this is not the first time this has happened 
to them. They were afraid to say anything the other times 

Jarrett Webb worked for the Omaha Public Power District 
and was a board member of the Franklin Community Federal 
Credit Union, headed by Lawrence E. King, Jr. His wife, Bar- 
bara, is Larry King's cousin. 

Foster child Sean McArthur and adopted son Joey Patterson* 
Webb were removed from the Webbs' custody that month. 
Other of their foster and adopted children-there were as many 
as nine in the house at one time-tried to make their break, 



THE FRANKLIN COVER-UP 



sometimes alone, sometimes in pairs. In August, Joey's sister 
Kimberly Patterson* Webb (age 14) and another brother, Mi- 
chael*, ran away, but were returned to the Webbs. InNovember, 
Nelly Patterson* Webb, 16, fled to the home of her grand- 
mother, Ruby Patterson*. 

The Fremont office of DSS reported on the reasons, in a 
document dated December 18, 1985: 

Our office and a Deputy interviewed Kimberly [who had 
obtained permission to visit Nelly at their grandmother's] 
and Nelly separately and together. Both girls stated numer- 
ous times that they refuse to go back to the Webbs. . . . 
Both girls have stated they have received "whippings" and 
"beatings" from both Barbara and Jarrett at different times. 
These started in 1978, approximately eight months after they 
moved into the Webb home. The girls said they were hit 
with objects: an extension cord, a belt, a "black thing," 
(rubber hose) and a "railroad prop" (a narrow piece of heavy 
black rubber approximately two feet long with several holes 
in each end). Before they were struck, they were made to 
remove their clothing. They were mainly struck on the back 
or on the behind, but occasionally on the head or face. 

Social workers removed Nelly, whose full name was Corne- 
lia M. Patterson* Webb, from the Webb home and placed 
her with foster parents Ron and Kathleen Sorenson in Blair, 
Nebraska. Soon after this move, she was interviewed at the 
Washington County Sheriff's Office by State Patrol Investigator 
Jane F. Tooley. Tooley found out that the abuse was not limited 
to beatings. 

Tooley wrote in her report, dated January 30, 1986: 

She stated that she had been sexually abused. . .. Nelly 
stated that when she was approximately nine or ten years 
of age, that Jarrett Webb kissed her for a long time and that 
she pulled away because she couldn't breathe and it was 
nasty. She stated that he was french kissing her and she 

stated that he was slobbering in her mouth Nelly stated 

again that when she was approximately nine or ten years 
old that on one occasion Jarrett Webb made her take a nap 
with him in his bed and she stated "he played with all my 



A MAN WELL-KNOWN TO CHILDREN 



body parts" ... he touched her vagina and that he put his 

finger inside her vagina Nelly stated that when she was 

10 and 11 years old, at night time when everyone was in 
bed, Jarrett Webb called her into his room a couple of times. 
When she didn't come into the room he then told her to 
come in or he would whip her. . . . She stated that Jarrett 
Webb pulled the sheet down and pulled her on top of him. 
. . . She stated that she could feel his hair against her leg 
and knew that he didn't have any underwear on. 

When Nelly was 15, she told Tooley, Jarrett Webb punished 
her by ordering her to undress and lie on the bed, and then 
beating her with a rubber strap. Next, he made her lie on her 
back, put her legs in the air, and "he pressed himself between 

her legs," and "started 'humping her' He started beating 

her again with the strap He then started sucking on her 

breasts. . .. Nelly stated that she started crying and that 
Webb left." 

When, in February of 1986, the Department of Social Ser- 
vices requested immediate and emergency removal of Kendra* 
and Michael Webb from the Webb home, it listed eight separate 
concerns, among them: 

2) Repeated allegations of physical abuse told to our 
Department by six children during separate interviews: a) of 
being struck for long periods of time while naked, by various 
objects, including a belt, rubber hose, and the "railroad 
prop"; b) denial of meals in the home 

3) Sexual abuse of Nelly by Jarrett (supported by a poly- 
graph test given to Nelly 1-30-86) 

4) The intense concern by the children out of the Webb 
home for the physical and emotional well-being of the chil- 
dren remaining in the home 



DSS memos show that the Webbs aggressively sought to 
terminate their status as adoptive parents of Nelly and Kim- 
berly, starting immediately after Nelly's flight in November 



THE FRANKLIN COVER-UP 

1985. Under DSS rules, this would cut short an investigation 
into the mistreatment of the girls. 

Reversing an adoption was not a routine procedure. "Regard- 
ing a relinquishment [of adopted children], the Department 
does not accept one easily," noted one DSS social worker in 
her log of the Patterson Webb case. The Webbs insisted on it. 
Social workers recorded that in January 1986, Barbara Webb 
"was crying and carrying on," inquired about "allegations" the 
girls were making, and wanted "to get relinquishment over 
with." 

Negotiations on behalf of the Webbs were conducted by 
attorney Gary Randall, whose brother Casey Randall was in 
the orbit of Larry King's Franklin Credit Union; Nelly and 
Kimberly referred to Casey as "Larry's maid." Gary Randall 
arranged the relinquishment with the help of the very official 
who would have handled a criminal prosecution of the Webbs 
for child abuse, had there been one at that time-Washington 
County prosecutor Patrick Tripp. 

In June 1986, in the face of a pattern of gross abuse of 
children by the Webbs, the state suspended their foster care 
license. Prosecutor Patrick Tripp again came to the rescue, 
deciding not to file sexual abuse charges or any other charges 
against Jarrett or Barbara Webb. 

Instead of investigating her reports about the Webbs' 
involvement in pornography and child prostitution, Tripp called 
Nelly Webb a liar-lie detector tests notwithstanding. 

Tripp's attitude was recorded by Julie Walters, a youth care 
worker called on to interview Nelly and Kimberly Patterson 
Webb in March 1986, because they had described abuse of 
boys residing at Boys Town, the large orphanage west of 
Omaha, where Walters was employed. In Walters' fifty-page 
report on the child abuse described to her by the girls, Tripp 
figures as an adversary of the children: 

When presented with Jane Tooley's investigation, Pat Tripp, 
the Washington County prosecutor, said he didn't believe 
Nelly and wanted her to take a polygraph test. At his request, 
Nelly was given four polygraph tests administered by a state 
trooper at the State Patrol office on Center St. in Omaha. 



A MAN WELL KNOWN TO CHILDREN 

The state trooper, after Nelly's testing was completed, told 
Kathleen Sorenson he tried to "break Nelly down" but he 
was convinced she was telling the truth. He also told Nelly 
that she "passed" and that he believed her. Although the 
polygraph tests showed Nelly was not deceptive, Atty. Pat 
Tripp maintained he still didn't believe what Nelly said. He 
said Nelly had fantasized those stories to the point that she 
believed they were true. 

Tripp's line, that child victims in Nebraska just invent 
abuses, and that therefore their complaints need not be seriously 
investigated, would be heard from one law enforcement agency 
after another, throughout the Franklin case, down to the perjury 
conviction of victim-witness Alisha Owen. 

For Pat Tripp, there was a personal element in this case. He 
was a "good friend," according to foster parents cited in a 
September 1989 report by legislative Franklin committee inves- 
tigator Karen Ormiston, of two individuals named by Nelly and 
Kimberiy Webb as involved with the Webbs-Fort Calhoun 
Superintendent of Schools Deward Finch and Fort Calhoun 
High School principal Kent Miller. 

Between late 1985 and June 1986, thanks to Tripp, the 
Webbs escaped both a DSS investigation and possible criminal 
prosecution. Shortly after his refusal to file criminal charges 
in this case, Tripp quit as Washington County attorney. Today 
he is a prominent lawyer in Omaha. 



Well-known as they were, Deward Finch and Kent Miller 
were small fry compared to another name that appeared in 
Walters' report, the same person for whom Nelly and Kimberiy 
said Casey Randall was the "maid"-Larry King. Walters 
wrote: 

While the Webbs were away, the kids snooped through the 
house. They found: I. pornographic video tapes in a bag 
under the Webbs' bed (which the kids played on the VCR 
while Webbs were gone)-one tape specifically showing 
teenagers involved in sexual activity. Nelly and Kimberiy 



THE FRANKLIN COVER-UP 



knew from eavesdropping that Larry King supplied the 
Webbs with the video tapes; 2. pornographic magazines in 
the basement. Once when Sean was suspected of snooping 
around in the magazines he was not allowed to eat anything at 
the Webbs' house for one week; 3. box of a lot of "romantic" 
novels in Mrs. Webb's closet (i.e., mothers having sex with 
their sons); 4. stacks of 8" x 10" (approx.) "photo" envelopes 
marked NOT BEND" in Mrs. Webb's closet ... ; 

5. photos of naked white women in Webbs' bedroom 
dresser drawer. 

Walters' report also conveys the Webbs' pricey lifestyle 
and the involvement of more people, including Larry King, in 
their activities: 

Although at the 3/7/86 hearing, Mr. Webb stated that he 
earns $32,000/year, the Webbs' home is furnished quite 
expensively ($2,000 paintings, crystal, silver, several VCRs, 
TVs, etc.). Also, Mrs. Webb wears a four carat diamond ring, 
a full-length fur coat, all custom-made dresses, expensive 
accessories. When they throw a party it includes caterers 
and limousines 

Larry [King] attends meetings/parties at the Omaha Girls' 
Club . . . about every other week. He sometimes invited Joey 
Webb or Nelly by calling the Webbs and telling them to 
have one of the kids ready in so many minutes. Nelly said 
they had no choice about attending these functions. She said 
she attended only once about 2 years ago (age 14) but Joey 
attended regularly from the time he was in seventh grade 
(approx. age 12-13) until he left the Webbs' home (age 16). 
When Nelly attended she and Larry King went alone in 
his limo. Other times, Mrs. King and Mr. and Mrs. Webb 
also attended. 

Nelly described these functions as lasting about 45 min- 
utes. She said she attended one held on a Fri. evening about 
7:00 p.m. There were about ten to fifteen older men present 
and about twenty-five young teenage girls there. The girls 
all signed a brown notebook Larry King had. Nelly has 
appeared very frightened and teared up when asked about 
[document illegible] 

Larry King either called or sent invitations to Nelly, 
Kimberly and Joey to attend parties at his home which are 



10 



A MAN WELL KNOWN TO CHILDREN 



held about every other week. This began about two years 
ago. Again, Nelly said the kids had no choice about whether 
or not they would attend. They were driven over to King's 
with Mr. and Mrs. Webb 

Nelly and Kimberly said they talked with boys at those 

parties who said they were from Boys' Town . From 

[Boys' Town] year book photos, after examining '83, '84 
& '85 yearbooks, Kimberly said [four boys] had all attended 
some of Larry's parties during the summers of '84 and 
'85. Nelly was afraid to mention any names but earlier had 
mentioned a "Brent" (whose picture she didn't find in the 
yearbooks), who told her he had left Boys' Town in '84. 
Brent was "flown to another city somewhere" in Larry's 
private plane to "work for someone else" after he and Larry 
had a disagreement. . . . 

At the parties there are usually about thirty adults present, 
male & females, more white than black guests because ac- 
cording to Larry "blacks get ignorant when they drink and 
tighter with their money and whites spend more money when 
they're drunk." Also present were some prostitutes (ages 
unknown but not teenagers) and [illegible] ages 16-22, and 
Nelly and Kimberly-about twenty kids total. If a man was 
interested in a young lady he held out a folded $50 or $100 
bill in front of them and whispered something in their ear. 
Then they went upstairs or to some other area of the house. 
Nelly and Kimberly said the prostitutes told them they gave 
half of the money they got to Larry King. Larry also gave 
some of the boys at these parties new cars. The sexual 
activity was not always behind closed doors or confined to 
the upstairs rooms, and sometimes involved more than two 
people. Couples engaged in sexual activity were same-sex 

as well as opposite sex The money Joey told Nelly and 

Kimberly he made "working for Larry" the Webbs took 
from him supposedly to keep for him 

The girls talked about Larry King's power to command 
underage youth to do his bidding: 

Larry claims to donate money to Boys' Town and be on the 
Board of Directors at Girls Club. Nelly said Larry has gotten 
Boys' Town boys and other boys to his home by asking 
them to do some yard work. I f Larry asks the young man 



II 



THE FRANKLIN COVER UP 



to do something and he refuses, Larry might hit him. Nelly 
said Larry "has a bad temper." Larry also tells the young 
men they'll get hurt. 



Julie Walters' write-up contains the most explosive account 
by the Patterson Webb girls, which marked the pornography 
and prostitution network they were caught up in as a scandal 
of national scope. What they told was so awful, that it screamed 
for immediate investigation. In the course of attempts by law 
enforcement personnel and, later on, news media to belittle 
the children's testimony, however, this particular item from 
Nelly's account would serve the opposite purpose: How can 
anything she says be believed, the line went, if she says this? 
The passage in Julie Walters' handwritten report reads as 
follows: 

Nelly also accompanied Mr. and Mrs. King and [their son] 
Prince on trips to Chicago, N.Y. and Washington, D.C., 
beginning when she was 15 years old. She missed twenty- 
two days of school almost totally due to these trips. Nelly 
was taken along on the pretense of being Prince's babysitter. 
Last year she met V.P. George Bush and saw him again at 
one of the parties Larry gave while on a Washington, D.C. 
trip. At some of the parties there are just men (as was the 
case at the party George Bush attended)-older men and 
younger men in their early twenties. Nelly said she has seen 
sodomy committed at those parties. At other parties during 
Larry's trips, Larry had local prostitutes (in their 20's & 

30's) there to entertain his male guests 

At these parties, Nelly said every guest had a bodyguard 
and she saw some of the men wearing guns. All guests had 
to produce a card which was run through a machine to verify 
the guest was, in fact, who they said they were. And then 
each guest was frisked down before entering the party. 

This was not the last time that the name of George Bush 
would surface in the Franklin affair. 



12 



A MAN WELL KNOWN TO CHILDREN 



After the Patterson Webb girls raised Larry King's name, 
Julie Walters asked some discreet questions about King of 
Boys Town employees, and of some people in the north Omaha 
community. Walters summarized what she was told: 

"If you mess with him, you'll get your legs broken." 

"On the outside he has all the appearances of an upstand- 
ing citizen; but underneath he's very dirty." 

"Omaha has a very large underworld and he's a very 
powerful man nationally. Maybe he doesn't have all the 
connections personally but he knows the people who do. 
. . . [King] used to be very active in Big Brothers and took 
more than an appropriate interest in the young men." 

Walters also recorded information on Fort Calhoun school 
officials Deward Finch and Kent Miller, whose "good friend" 
Washington Country prosecutor Pat Tripp was. Finch would 
later be named by two other victim-witnesses as an associate 
of Larry King. 

Walters wrote: 

Kimberly overheard Mrs. Webb tell someone on the phone, 
got him [Finch] all the way. 1 caught him several times 
down there with black girls." Nelly saw Mr. Finch leave the 
Webb home once as she returned home from school and 
Kimberly saw him leave the Webb house several times dur- 
ing daytime hours. Kimberly's first period class at school 
is a study hall which is located across the hall from the 
school's office. She said Mr. Finch would regularly call the 
Webbs and say, "It's time for another meeting." Mr. Finch 
would interrupt whatever he was doing when the Webbs 
arrived to meet with them, meeting in the school office 
sometimes for several hours. At some meetings, Kent 
Miller, principal of Ft. Calhoun H.S., was also present. 
Mrs. Webb almost always carried a large Gucci bag (almost 
the size of a shopping bag) with her into these meetings. 
Kimberly said Mrs. Webb carried some photo envelopes 
(from Mrs. Webb's closet) with her at least once into these 



13 



THE FRANKLIN COVER-UP 



meetings, telling Kimberly she was going to show Mr. Miller 
pictures from their trip. 



The Walters report was turned over to law enforcement 
agencies by March 1986. The DSS logs were also accessible. 

Law enforcement officials failed to pursue the many clues 
and leads provided in these eyewitness accounts by children 
living with the Webbs, which might have taken them into 
a cleanout of child prostitution, pornography, and interstate 
transportation of child prostitutes from Boys Town. While they 
stalled, the trail grew cold. County Prosecutor Patrick Tripp 
called Nelly Patterson Webb a liar after she passed four lie 
detector tests. Nobody was indicted. Jarrett and Barbara Webb 
went free. And Larry King was invited back to sing the Star 
Spangled Banner at the Republican National Convention in 
1988, as he had done in 1984. 



14 



CHAPTER 3 



PORNOGRAPHY AND 
RITUAL MURDER 



On May 5, 1988, Margo Georgiu* and her daughter Brenda 
Parker*, 17, filed a complaint against an Omaha photographer, 
Rusty Nelson, which the Omaha Police Department (OPD) 
logged under "possible child pornography." 

According to police records, Nelson approached Brenda at 
a store where she was a cashier, and told her he was "doing 
some photographic work for the Easter Seals Campaign." He 
left her his business card, which read "Rusty Nelson the Camera 
Man, Creative Photography. " When Brenda telephoned, Nelson 
said he needed to take pictures of redheads like her for a 
"European portfolio," and that she would pose wearing swim- 
suits and lingerie. Brenda asked if she could bring her mother 
to the photography session, to which Nelson agreed. 

Officer IrlCarmean interviewed Parker and Georgiu on May 
9, about what they had seen five days earlier, during the five- 
hour session with Nelson at his studio in the Twin Towers. 
Carmean recorded: 

NELSON took several photographs of PARKER in various 
types of clothing, although no swimsuits or lengerie [sic] 
were worn. Brenda stated that NELSON repeatedly made 
references to PARKER in her birthday suit and making 
her breasts look bigger. Nelson never specifically asked 
PARKER to pose nude or semi-nude but did try to get her 
to show as much skin as possible and also try to make 
PARKER show as much cleavage as possible. Repeatedly, 
NELSON tried to persuade PARKER to model in lengerie 
[sic] as well as a form of clothing known as "teddies." 
PARKER indicated she refused to do this. 



15 



THE FRANKLIN COVER UP 



During the course of the photographic session, PAR- 
KER'S mother MARGO GEORGIU looked at several pho- 
tographs which were scattered about the apartment and ap- 
parently taken by NELSON. Margo GEORGIU stated that 
she observed several photographs of nude females ranging 
in age in her estimation from 20 years old to as young as 
possibly twelve. Several of the females in the photographs 
showed frontal nudity. 

Suspicious about the Creative Photography set-up, Margo 
Georgiu phoned around to various modeling agencies and 
schools in Omaha, to which Nelson had claimed he supplied 
pictures. No one there had heard of him, with the exception 
of a man at one agency, who called Nelson a pervert and 
warned Georgiu to keep her daughter away from him. That's 
when she called the police. 

Officer Carmean reported: 

Brenda PARKER indicated that she suspected NELSON to 
be a homosexual. PARKER identified NELSON as being a 
white male approximately 25 years old, 5'9", 140 pounds 
with dish water blond hair and a small blond mustache. He 
was casually dressed and appeared quite a feminine [sic]. 

During there [sic] conversation, PARKER stated that 
NELSON said that he does work at Max which is a gay bar 
located in Downtown Omaha and he further stated that he 
frequents gay bars. 

PARKER stated that NELSON continually offered vari- 
ous foods and drink to both PARKER and her mother. NEL- 
SON placed a very large bowl of strawberries on a table 
offering them to Brenda and her mother. They were also 
offered to drink some champagne. 

During the conversation, NELSON stated that he was 
self-employed but made a couple of references to "the boss" 
keeping the place well-stocked and that the boss let him 
stay there rent free. It is unknown who the boss is. 



The officer sent to investigate Nelson's digs quickly estab- 
lished that "the boss" was Larry King. 



16 



PORNOGRAPHY AND RITUAL MURDER 

On Wednesday, 25 May 88, Reporting Officer MICHAEL 
HOCH went to The TWIN TOWERS, 2900 Farnam Street, 
and spoke with the Owner/Operator of The TWIN TOWER 
complex. . . . [He] indicated that a party by the name of 
RUSTY NELSON, who is occupying Apt. #3-B (which 
was leased to LARRY KING), has since moved out of the 
apartment complex. 

Nelson had suddenly vacated on May 14, nine days after 
Georgiu and her daughter filed their complaint. 

In the same building, Larry King also paid the rent on a 
luxury penthouse. Officer Hoch reported: 

Since KING has rented the apartment [in August 1987], [the 
manager] believed that he has possibly put $50,000.00 into 
the apartment in such things as decorating, drapes, and fur- 
nishings. [He] went on to state that he had bought a couch 
from one of the furniture dealers in Omaha that would not 
fit in the elevator as it was being transported to KING'S 
apartment. And, as a result of this, a crane was rented for 
the amount of $1,200.00 to have the couch lifted to the 
apartment from the outside. [He] also stated that the apart- 
ment was very elegantly furnished; and the $50,000.00 out- 
lay would not include (what he described as) original paint- 
ings, along with what is believed to be possibly a solid silver 
chair. [He] also stated . . . that he knows that KING drives 
at least five different vehicles: Three of the vehicles being 
Mercedes-Benzes, one being a Cadillac Alante, and the other 
being some type of sports car 

[He] also stated that he believes that KING owns proper- 
ties in Washington, D.C [He] went on to state that 

KING has a habit of throwing names around, and it is be- 
lieved he is very influential in the Republican party. [He] 
also indicated that he does not understand how KING has 
as much money as he does to spend. KING does not actually 
live at the Penthouse apartment in The TWIN TOWERS, 
but uses the apartment for parties and occasionally stays at 
the apartment. 

[He] stated that he had talked to a realtor . . . who indi- 
cated that KING apparently attempted to purchase a resi- 
dence approximately five years ago and, at that time, had 



17 



THE FRANKLIN COVER UP 



trouble coming up with a down payment for the house. It 
seemed strange to [him] that in five years KING has come 
into as much money as he spends. 

At a neighboring complex, the Orpheum Tower, Officer 
Hoch learned that tenant Larry King sublet an apartment to a 
young man who was a disc jockey at the Max bar. King had 
told the building manager that he was renting the apartment 
as a place to stay when he worked late, so that he didn't have 
to travel out to his suburban home. 

Hoch asked the Orpheum manager 

if she knew any particulars or had heard any type of informa- 
tion about LARRY KING, as it seemed very strange that 
he would rent an apartment in the ORPHEUM TOWER and 
is presently renting an apartment at The TWIN TOWERS. 
[She] indicated that she did not know any specifics about 
LARRY KING; however she stated that she has heard ru- 
mors that he is a very heavy drug dealer, and that she has 
heard this from more than one individual. . . . [She] stated 
that she has also heard that LARRY KING is a homosexual 
and has a preference of young men or boys. 



The OPD dropped its probe of Rusty Nelson, his apparent 
pornography operation, and his "boss." But on June 28, 1988, 
Officer Carmean was dispatched to interview a different girl, 
whose terrible story pointed to the same clique. 

She was fifteen-year-old Loretta Smith*, who lived with her 
mother and brother in Omaha. At the time Carmean talked to 
her, Loretta was hospitalized at Richard Young Hospital, where 
she had told a therapist, in the words of Carmean's report, 
about "incidents in which she has been photographed nude or 
partially nude as well as instances of devil worship." 

Carmean wrote that Loretta was "rather articulate for a 15 
year old and spoke and acted rather maturely for her years." 
Excerpts from Carmean's report provide the outline of her 
story: 



18 



PORNOGRAPHY AND RITUAL MURDER 



SMITH initiated the conversation by indicating that approxi- 
mately five or six years ago when she was nine years old 
she went to a party with some friends much older than her. 
There, she met a white male . . . who coaxed her into model- 
ing for him. . . . [He] offered to take SMITH home if SMITH 

would pose for some pictures Initially, the unidentified 

white male took photographs of her with a polaroid camera, 
of her fully clothed, although finally, she agreed to pose 
for one completely nude photograph taken by this white 
male 

SMITH then spoke of occasions when she went to the 
North Omaha Girls Club on Lake Street, with friends of hers 
whom she identified as NELLY and KIMBERLY WEBB. 

There, she discovered that they were also "modeling" 

SMITH stated that those field trips consisted of the girls 
being taken to a photographic studio where pictures were 

taken of them either nude or partially clad SMITH also 

stated that she has not spoken to or knows the whereabouts 
of either NELLY or KIMBERLY WEBB, not having seen 
them for approximately three years 

She stated that a number of adults, whom she referred 
to as leaders from the North Omaha Girls Club, both male 
and female, were engaged in the photography of nude chil- 
dren. She also indicated that a number of prominent individu- 
als were involved, including doctors and lawyers although 
she indicated they used code names and that she could pro- 
vide no real names for these individuals. 

SMITH also indicated that the adult leaders who took 
these photographs used threats against her and others to get 
them to participate in these photographic sessions. She stated 
that she had been told on occasion that her entire family 
would be killed as well as her if she refused to participate 
in these activities. 

Loretta told Officer Carmean that she "began participating 
in what she termed devil worship with other juveniles and 
adults. She stated that she was approximately IDY2 or 11 years 
old when she started attending these rituals," which sometimes 
included nude photography. Those participating "were given 
something to drink which she stated, tasted like apple juice 
but which she thought contained some kind of a drug " 



19 



THE FRANKLIN COVER UP 



SMITH indicated that NELLY and KIMBERLY WEBB, 
had also reported these activities to Police in the past but 
that nothing had been done. She stated that the WEBB girls 
had told the superintendent of Fort Calhoun Schools whom 
she identified as a Mr. FINCH, and stated that it had been 
reported to him first but the girls felt that since nothing was 
done that he must have been involved also. 

In a report dated June 30, 1988, Carmean put down more 
of what he had learned from Loretta: 

During the course of Reporting Officer's interview with 
LORETTA ISABEL SMITH concerning child pornography 
activity, as well as devil worship, she mentioned the name 
of LARRY KING as being a participant and supporter in 
these activities. Asked how she knew this, SMITH stated 
that she is a friend of . . . the daughter of GARY WEST. 
(WEST is reportedly the manager for MAX'S, a predomi- 
nantly homosexual bar located south of CENTRAL STA- 
TION at 1415 Jackson Street). 

SMITH stated that she has been to the WEST residence 
several times, and that GARY WEST is a homosexual, as 
well as an alcoholic. She stated that when he does become 
intoxicated, he talks about his certain activities with LARRY 
KING, and indicated that he is into the use of controlled 
substances (i.e. cocaine) for personal use, as well as for 
sale, and that he owes LARRY KING a lot of money for 
this 

With regard to Larry King, she stated that she knows that 

he supports devil worship activities She further indicated 

that KING owns a house on Wirt Street, the exact location 
of which she did not know, but that KING holds various 
drug and sex parties there. 

SMITH initially told Reporting Officer that she had been 
to the Wirt house on one occasion, in which she saw three 
or four teenage males engaged in oral copulation. ... It 
became apparent, when SMITH began talking about KING 
and WEST with a lack of specificity, that she didn't wish 
to go into much detail with Reporting Officer, at this time. 
Reporting Officer told her to consider recalling as much 
information as possible, and that she and Reporting Officer 
would talk again at a later date. 



20 



PORNOGRAPHY AND RITUAL MURDER 

On July 5, Loretta did telephone Officer Carmean and gave 
him the address and phone number of King's house on Wirt 
Street. Carmean drove by the house and called the number. 
The phone was answered "King Company." At the house, 
Carmean wrote in his log, he "observed on a gray awning . . . 
the name KING in black script lettering." 



During 1988, as Loretta Smith grew to trust the doctors, 
nurses, and other personnel at Richard Young Hospital, she 
revealed more detail about what she and the other children had 
been subjected to. Her case file is summarized in a report for 
the Legislature's Franklin committee (by Jerry Lowe, 1989), 
which gives the dates on which Loretta talked to hospital staff: 

Loretta . . . provided additional information of her previous 
involvement in cult activity which included the witnessing of 
homicides of several young children and which also included 
references to Larry King and others involved in the cult activ- 
ities. 

August 19, 1988. The hospital notes indicated that Loretta 
was asked to give a chronological account of involvement 
in what is described as a devil worship cult and that Loretta 
agreed to do this. Loretta indicated that she didn't really 
know what was happening and that she became involved 
very gradually. She indicated that when she was approxi- 
mately nine years old she was going to the Girl's Club in 
Omaha and that a guy named Ray would take her and four 
or five other girls at the Girl's Club on outings .... He 
took them to a building that according to Loretta looked 
abandoned and asked the girls if they wanted to go in which 
they all agreed to do. Loretta indicated they sat and talked 
for a while and then Ray provided a joint and all of the 
individuals got high. She indicated this activity continued 
for about three or four weeks and then Ray took them to 
a party. 

Loretta indicated that at the party there were about ten 
men all in their mid-thirties and that initially they sat around 
and talked with the girls about their problems. Loretta indi- 



21 



THE FRANKLIN COVER-UP 



cated that all the people got wasted and that the men at the 
party made them sleep around and that the girls did not have 
a choice of who they slept with .... 

Loretta stayed away from the Girls Club after this for a few 
days, but 

then in order to get out of the house she did begin going to 

the parties again and they lasted for another six months 

[0]n one occasion she threatened to tell her mother that the 
men were having sex with her and that they knew she was 
only nine but the men indicated that they would kill anyone 
who told about the activities 

The men started taking the girls to what the men described 
as power meetings. Loretta advised she was ten years old. 
She indicated that candles and other weird stuff were at the 
power meetings. According to Loretta, one of the individuals 
on one occasion told the girls that the room was going to 
spin for a while and it did and she realized later that it was 
drugs that the men had given them. 

Loretta advised that about eight months later she was put 
through her first test. Her and the other girls were taken to 
a building in Omaha where . . . she was locked in a room 
with a little girl which she described as a Caucasian infant. 
At about midnight, Loretta indicated that the men came into 
the room, took the little girl away from her and told her that 
she could achieve power by killing something that she really 
loved. Loretta described that they then cut the little girl's 
head off, stuck it on the wall and made her sit in front of 
it. Loretta indicated later she had to take the head off the 
wall and that the men held her down while they cut the eyes 
out of the little girl's head. They then left Loretta and the 
girl in the room, locking the door. . . . [S]he was left in the 
locked room with the little girl for twenty-four hours and 
during this time she could hear another one of the girls 
screaming [Sjhe could hear the men whipping and beat- 

ing the girl. Shortly after this the men came into the 

room and told Loretta that she had passed the test and then 
drove her a couple blocks from her house and let her 
out. . . . 

Loretta indicated the next time that she saw the men she 
had gone to a friend's house who was having a party and 



22 



PORNOGRAPHY AND RITUAL MURDER 



the men showed up. Loretta identified two of the men as 
Larry King and a Mr. Finch who Loretta indicated was a 
school principal. Additionally she identified parties as Ace, 
King Horse, Jerry Lucifer and Mike 

After one such party, Loretta said, another girl called 
OPD and 

reported that she was raped and tried to press charges 

(OJther girls covered up the rape for the men. Loretta indi- 
cated that she again threatened to tell about the activities 
and the men said they would kill her or her mother. . . . 

At [another] meeting Loretta indicated devil worshipping 
was practiced and that another small boy was sacrificed. 
Loretta and the other girls were in the other room and she 

could hear the little boy screaming She then indicated 

the child was fried and eaten by the girls. Loretta indicated 
she refused to take part in this so that the men beat her for 
two days. 

At additional meetings Loretta indicated the men told her 
and the other girls that they must sacrifice for power and 
described three incidents where further sacrifices took place. 
The first a one-year old white female had her head taken off 
by a saw, the second a four-year old white male was hung 
on the wall and darts thrown at him and the third an Indian 
female, three or four years old, had several parts of her body 
cut off after which it was ground and poured on the girls 
and they also were made to drink the remains of the child 

August 21, 1988. Loretta indicated the third, fourth and 
fifth sacrifices took place during the spring of 1985 when 
she was eleven and that the parties that were at these sacri- 
fices were Mr. Finch, King Horses, and the big guy she 
referred to earlier. Between the sacrifices she indicated that 
the girls were tested to see if they would keep quiet and 
how much control that the men had over them 

Loretta indicated that the men would try to scare the girls 
by having them watch as animals were mutilated and also 
the men would threaten them by saying that instead of killing 
them that they would just cut off parts of bodies and torture 
the girls and make them suffer. 

Asked to provide details relative to the first sacrifice of 
the infant girl, Loretta indicated that at first she didn't cry 



23 



THE FRANKLIN COVER-UP 

and after this the men cut the eyes out of the girl. Loretta 
indicated that she freaked out, was screaming and hitting 

the walls [She said] the cult members were wearing what 

she described as clothes which had upside-down crosses on 
them and that the leader always wore a long black cape with 

gold rings shaped like a skeleton head 

Loretta . . . went into the Immanuel Hospital for the first 
time in November of 1985 and also was in Immanuel in 
January of 1986 and March of 1986. Then her mother put 
her in the court system so that she could ultimately get her 
into Uta Halee, [a school and residence for troubled girls]. 



To the expert eye of Foster Care Review Board Executive 
Director Carol Stitt, when she received the reports from Loret- 
ta's caseworkers, the girl's testimony appeared highly credible. 
Stitt explained before the state Legislature's Executive Board, 
on December 19, 1988, "[0]ne of the things that you want to 
keep in mind, as horrifying as this is when you review it, this 
girl is very concrete about who was present at these homicides, 
what was happening, dates, she gave a lot of specific informa- 
tion and in working with children one of the ways you know 
this is not a global fantasy is the more details they give you." 

The information given to hospital staff and to the Omaha 
police by Loretta Smith overlapped and corroborated what was 
already in the hands of authorities from the children from the 
Webb household, and from Margo Georgiu and her daughter. 
From three separate cases, involving pornography, child abuse, 
and ritual murder, children's testimony and other evidence 
converged on Larry King. 



24 



CHAPTER 4 



COVER-UP PHASE 
THE POLICE 



In July 1988, Omaha police officers in the Robbery and Sex 
Unit received an unexpected visit from their boss, Chief of 
Police Robert Wadman. According to the officers' own account, 
related by Nebraska Foster Care Review Board official Dennis 
Carlson in testimony to the Legislature's Executive Board, 
they took precautions to keep Wadman out of their work on 
Larry King. 

Excerpts of Carlson's remarks, from the Executive Board 
minutes of December 19, 1988, show that the officers feared 
a police cover-up of King's activities, from within the de- 
partment: 

[Officer Carmean] told me some things which I found to be 
somewhat startling. I asked if he was interested in informa- 
tion regarding Larry King and he said, yes we are, we're 
conducting what he called a supersensitive investigation of 
Larry King and he said this investigation was so supersensi- 
tive that they were not even using the steno pool in the 
Omaha Police Department. 

They were handwriting their police reports, and he also 
told me that Chief Wadman had come to their unit and 

directly asked if they were investigating Larry King . 

Investigator Carmean told me, we lied to the Chief and we 
said, no, we are not investigating Larry King. OK, so that 
conversation took place on July 20th of 1988. 

After we were presented with that information we had 
some concerns as to what was going on in the Omaha Police 
Department We were concerned about if we gave this infor- 



25 



THE FRANKLIN COVER-UP 



mation to the Omaha Police Department what would they 
do with it? 



The investigation of Loretta Smith's charges did not go far, 
in Wadman's department. Neither did the career of Officer 
Carmean. 

On the afternoon of June 28, 1988, immediately after 
Carmean's interview with Loretta, his supervisor, Sgt. Ken 
Bovasso, spoke by telephone with Dr. Kay Shilling, Loretta's 
psychiatrist at the hospital. According to Bovasso's write-up, 
Shilling 

told this Reporting Officer that she has spoken with LO- 
RETTA SMITH since LORETTA'S discussion with Officer 
CARMEAN.... LORETTA told DR. SHILLING that she 
only gave Officer CARMEAN general information, . . . [but] 
that she had no problem talking with Officer CARMEAN. 
Reporting Officer told DR. SHILLING that sometime during 
the week of 04 July 1988 this Reporting Officer will assign 
Officer CARMEAN to revisit Loretta at the hospital in order 
to build up some rapport and possibly obtain more spe- 
cific information. 

Carmean never came back to interview Loretta Smith again. 

As Loretta volunteered more horrific, detailed allegations 
during the summer, Richard Young Hospital and FCRB person- 
nel were concerned about the lack of police interest. Dennis 
Carlson recalled, in his Executive Board testimony: 

Loretta was making more allegations against Larry King 
and others and these were allegations of the most serious 
nature. She was reporting that she had witnessed homicides. 
Investigator Carmean was contacted by myself on one, possi- 
bly two or three, occasions I'd tell him that this girl's 

making more allegations, that she's opening up, she's telling 
additional information, she's beginning to relate better to 
her case workers and social workers, would you please go 
out and re-interview this girl? . . . 

After Investigator Carmean received the information from 



26 



COVER UP PHASE I: THE POLICE 



the Foster Care Review Board, the information that I hand 
delivered to him, he never went back to interview Loretta 
Smith. In one of my telephone conversations with Investiga- 
tor Carmean, I remember telling him that this girl was now 
reporting homicides, and he said, yes, I need to get out there 
and re-interview this girl. . . . 

[OJne of my concerns Senator is the conduct of the Omaha 
Police Department. I don't know what's going on up there, 
I'm not familiar with the players in the Omaha Police Depart- 
ment, but I know that I hand delivered material to an investi- 
gator. . . . Investigator Carmean and Investigator Hoch left 
my office and they seemed sincere, they seemed that they 
were going to investigate these allegations and later it was 
as if air had been let out of a balloon, that all of a sudden 
they had no interest in even re-interviewing a girl who was 
saying that she had witnessed homicides and I just don't 
understand it. ... 

FCRB Executive Director Carol Stitt testified: 

I would like to add something that was highly unusual in 
this case. Loretta' s psychiatrist contacted the police in 
Omaha and asked them to come, Loretta' s personal care 
worker, Ken Stoner, contacted the police, [Richard Young 
employee] Kirstin Hallberg contacted the police, as well as 
Adrienne Hart, who is Kirstin's supervisor. All those people 
had made contact and nothing was being done 

Not long after after his interview with Loretta, Officer 
Carmean was transferred out of investigations altogether, into 
a section called Research and Planning. At the same Executive 
Board meeting, Senator Ernie Chambers recounted a phone 
conversation with Carmean: 

When I called [the sexual assault unit], they said he's no 
longer here and that's when they told me that he was with 
Research and Planning I finally . . . got him and I men- 
tioned his enthusiasm at the outset, and that from what I 
had developed in terms of creditable information being given 
to me, I felt he'd been transferred because he was getting 
too close to something and his superiors did not want him 
to continue. So there was a silence, then he kind of chuckled, 



27 



THE FRANKLIN COVER-UP 



he said, well, no, uh, I wanted this transfer. I've known of 
Carmean for years and he's not the type of officer who'd 
want to be put into an office where he's the only one there, 
in fact that might have been the creation of the department. 
Didn't even have a secretary. 

Carmean himself testified before the legislative Franklin 
committee in June 1989, that, although he had been pulled off 
the case, he thought Loretta's charges were "credible" and 
deserved follow-up. 

Less than two weeks later, on July 5, 1989, Chief Wadman 
tried to get Carmean declared crazy. In a lengthy "Inter-Office 
Communication" to Omaha Public Safety Director Pitmon Fox- 
all (a cousin of Larry Kingl), Wadman announced that Carmean 
needed a mental health evaluation: 

I am requesting a supervisory referral for Officer Irl Carmean 
to see police psychologist Dr. Steven Sherrets. I am basing 
this request on the actions demonstrated by Officer Carmean 

that surfaced during the Larry King investigation 

Prior to Officer Carmean's assignment with Research and 
Planning, he was serving as an investigator with the Robbery 
and Sex Unit under the command of Lt. Guy Goodrich. 
While in that assignment, Officer Carmean was involved as 
an investigator and did participate in looking into matters 
involving allegations that Larry King was involved in some 
sexual improprieties with young people. The investigation 
never did come close to supporting the allegations suffi- 
ciently for a charge to be considered against Larry King. 

One other Omaha policeman who was reported to have kept 
a file on Larry King, Officer Bill Skoleski, died of a heart 
attack. 



In August 1989, Chief Wadman dismissed out of hand the 
criminal, satanic horrors that Loretta Smith and other children 
had described to authorities. On Omaha radio station KKAR, 
the city's chief law enforcement officer chalked up concern 



28 



COVER-UP PHASE I: THE POLICE 



about these allegations to the fact that some Omahans have a 
"prurient interest of child abuse, of child sexual abuse, those 
kinds of things. ... I think that the media attention to that 
element of things is inappropriate." 

Regarding Loretta Smith, Wadman said, "The primary wit- 
ness was . . . making statements that were very bizarre and 
were not founded in reality." 

Wadman concluded his KKAR interview by stating that the 
OPD and other agencies had conducted a thorough investiga- 
tion, but the allegations led to "a dead end." 



Robert Wadman has sworn under oath that he barely knew 
Larry King, that he "had very few social contacts with Larry 
King." That's not what King says. In April 22, 1989 interviews 
with King and Wadman, Frank Brown of TV-7, Omaha, ques- 
tioned them about an incident in which Wadman intervened 
at King's request, to order the release of a suitcase seized in 
a drug raid. 

brown: King acknowledges he is a friend of Chief Wad- 
man's. We asked King did he call the chief to get a suitcase 
released that had been seized in a drug investigation? 

brown: You had that friendship where, you could 

King; Yes. 

brown: You could call the Chief of Police and get a piece 
of evidence released? 

King: I felt that I could call anyone in this city. 

brown: What was that suitcase? I've always wondered what 
was in that suitcase and what was it about? 

King: Urn, it's really nothing. It was a relative of mine and 
he was staying at a hotel, and I guess they had a drug bust 
or something 

brown: We asked Chief Robert Wadman if Larry King 
had ever telephoned him to get a suitcase released from 
police custody. 



29 



THE FRANKLIN COVER-UP 



WADMAN: Yes ... I can't recall if it was this past year or 
the year before that he did call regarding a situation and 
that information was forwarded to the unit responsible for 
the request. . . . 

BROWN: That did not compromise any investigation? 

WADMAN: Absolutely not. And I'm very disappointed that 
this situation continues to be protractive but it was a situation 
that was routinely handled. I receive literally hundreds of 
those requests and this situation was handled exactly the 
same way as the rest. 

Switching back to Larry King, Brown raised another question 
about a smooth ride he seemed to have gotten from the 
OPD: 

BROWN: The Omaha Police had an investigation last summer 
into an alleged pornographic 

KING: Vh, huh. 

BROWN: And you were cleared? 

KING: I didn't even know that they had one last summer. 
. . . [P]eople make up these things. People make up anything, 
you can hear anything about anyone. I f you choose to believe 
it you will, if you choose not to, you don't. I choose not to 
listen to garbage and gossip. 

King had indeed been cleared, with the blessing of Robert 
Wadman. The legislative Franklin committee's record of Wad- 
man's own testimony to this effect dates from October 13, 
1989. Besides Wadman, the speakers in this transcript are 
committee counsel John Stevens Berry and Robert Creager, 
and Wadman's attorney, Kent Whinnery. 

BERRY: Are you aware whether or not there have been any 
ongoing investigations in Omaha regarding whether or not 
Mr. King has been involved with narcotics? . . . 

WHINNERY: May I just ask a point of clarification? Are you 
talking about ongoing but not concluded or- 

BERRY: Well, I suppose I could ask a series of questions. 
Have there been in the past? Have there been any continuing? 



30 



COVER-UP PHASE I: THE POLICE 



Have there been any ongoing at all? Do you know anything 
about Mr. King or has Mr. King been a subject of a narcotics 
investigation? That's an area I want the Chief to address, 
and I'm happy to have him address it. 

WADMAN: I'm unaware of any of those. 

CREAGER: The answer is no? 

WADMAN: The answer is no, yeah. 

BERRY: Let me ask the very same broad question about Mr. 
King and the relationship to child pornography or pornogra- 
phy of any kind. 

WADMAN: We had a situation where we were advised that 
there was a possibility of child pornography involving-no, 
it came in as child pornography case. What happened is that 
there was a photographer who was taking photographs of 
young women, and in the course of that set of circumstances, 
a mother with her daughter called and filed a complaint with 
the police department, and the complaint involved a situation 
where her daughter was approached by the photographer to 
be photographed, and the photographer extended an invita- 
tion to this young woman's mother to come with her. 

They went to the studio; photographs were taken; and in 
the course of that the mother became concerned over the 
photographs and some of the photographs that she observed 
at the photo studio and then filed a complaint of concern 
that this was a possible pornographic situation. 

We investigated it, found the photographer to be, you 
know, legitimately involved in the photography business, 
legitimately involved in conducting the photographs, and 
getting signed releases and having a photography studio and 
so on. 

The only involvement is that this individual had subleased 
his studio or apartment from Larry King, and that was the 
extent of our investigation into pornography-related activi- 
ties involving Mr. King in any direct way. 

This was the photographer, Rusty Nelson, described to 
Margo Georgiu by people who knew him as "a pervert," and 
proven by her to have lied about his professional experience 
and resume. The pictures in his studio were "frontal nudity" 



31 



THE FRANKLIN COVER UP 



shots of adolescent girls. Nelson described King not as his 
landlord, but as his "boss." The investigating officers had com- 
piled and filed accounts from several people about the lavish 
spending by King on Nelson's and other apartments, about his 
comings and goings in Mercedes Benz cars, and other evidence 
of an unexplained leap in King's income, and about the common 
knowledge that King was involved with drug dealers and was 
a homosexual who "liked young boys." Wadman, who had 
approached his officers with such curiosity about any investiga- 
tions of Larry King that they might pursue, swore under oath, 
that he knew nothing about any of that. 



32 



CHAPTER 5 



JUST HOW BIG IS 
T HIS COVER-UP? 



The Nebraska Foster Care Review Board, which is not a law 
enforcement agency and is not equipped to investigate crimes, 
let alone prosecute them, in 1988 found itself by default the 
main recipient of reports of abuse from children and from case 
workers, which attested to the existence of an organized child 
exploitation ring in Nebraska, and stretching far beyond. 

Expressing frustration and alarm that the Omaha Police had 
failed to investigate reports of child murders and other serious 
crimes, even after many urgent phone calls from personnel at 
Richard Young Hospital, FCRB Executive Director Carol Stitt 
on July 13, 1988 met with Nebraska's Republican governor, 
Kay Orr, to seek help. Governor Orr told her to "do whatever 
is necessary" to secure an investigation. 

On July 20, Stitt wrote to Attorney General Robert Spire, 
to request that his office, the state's top prosecuting agency, 
enter the case. For the first time, somebody openly pulled 
together the testimony of Nelly Patterson Webb, Loretta Smith, 
and other children, whose reports of abuse all cited Larry King. 

"Pursuant to the Nebraska Child Abuse Statutes, the State 
Foster Care Review Board is making a report of allegations 
of a child exploitation ring and respectfully requests an investi- 
gation," wrote Stitt. She noted that in December 1987, FCRB 
had reviewed the allegations about a child prostitution ring 
centered on the Webb family's foster home. Then: 

On 5/17/88, the Foster Care Review Board received a phone 
call from Kirsten Hallberg . . . who is a previous employee 



33 



THE FRANKLIN COVER-UP 



of Uta Halee Girls Village and currently works for Richard 
Young Psychiatric Hospital in Omaha. She was aware of 
Nelly and [her youngest sister] Kendra's reports to the Re- 
view Board. Ms. Hallberg told me about three Uta Halee 
girls, a 20-year old young man at Richard Young, and three 
youths at Boys Town who all reported inappropriate activi- 
ties with Larry King of Omaha. She also reports that at a 
recent child exploitation conference in Kansas City a detec- 
tive from Kansas City . . . asked her when the Nebraska 
authorities were going to do something about Larry King. 
On 7120/88, Kirstin Hallberg reported a 15-year old girl 
at Richard Young who is talking about inappropriate activity 
with Larry King and also is alleging witnessing a murder 
of a young boy who said he was going to tell of the abuse 
he suffered. 

Along with the letter, the Foster Care Review Board turned 
over its entire file on these cases to the attorney general. Spire 
assured the FCRB that he would do everything in his power 
to help, and assigned the case to one of his top assistants, 
Bill Howland. 

As months dragged by with little apparent action by the 
attorney general, Stitt and Dennis Carlson demanded a meeting 
with Howland, which was held in his office on November 22, 
1988. Stitt described the meeting to the Legislature's Executive 
Board, on December 19, 1988: 

When Dennis and I were in this meeting it became clear to 
me that if Mr. Howland had ever read the materials we 
delivered to him in July, it was a long time ago. He didn't 

know major players' names in the case Dennis did some 

rather tough questioning and it became clear to both of us 
that nothing had occurred. The file was just a mess. I grabbed 
the file from him. Reordered it. ... 

Dennis and I both left that meeting, I mean, I can speak 
for myself, and I felt full of despair and I felt like all the 
optimism that we had had that something was going to 
happen, to not only help the kids who'd been abused, but 
to stop this from occurring to other kids, and many of the 
kids that I'm aware of were State wards, was not happening. 
Nothing was happening Now we see that we were just 



34 



JUST HOW BIG IS THIS COVER-UP? 

being put off, "Yeah, we'll get out there," and "Yeah, we'll 
do this," and "Yeah, we're on top of it," but really none of 
the officials had organized their investigation. 

Her fellow Executive Board member Burrell Williams 
added: 

I think we became really baffled and puzzled on what was 
going on when you get all this information in front of you 
and nothing had, [or] is being done about it. 

Dennis Carlson was also puzzled: 

I . . . don't know what if anything either the Omaha Police 
Department or the Attorney General's office actually did. 
... I f I were doing that investigation, the first thing I would 
have done with that information is contacted Loretta Smith 
who's making allegations that she had witnessed homicides, 

not a homicide, it's homicides I ... talked to Loretta 

Smith's case worker at Richard Young Hospital on Novem- 
ber 22 and she told me that the last person that interviewed 
Loretta was Officer Carmean and that took place on June 
28, 1988. 

On November 30, 1988, Stitt again attempted to contact the 
governor, to set up a still more urgent meeting, because of the 
failure of the attorney general's investigation to get off the 
ground. The governor's staff scheduled a meeting for the fol- 
lowing week, but canceled the appointment the next day. The 
governor, according to her office, was "not willing" to meet, 
as Carlson recorded in his daily notes of December 1 . 

In the November 22, 1988 meeting, Howland once again 
claimed he would do everything he could, a claim undercut 
by the attitude of the governor. The Attorney General's Office 
put one investigator, Thomas Vlahoulis, on the case part time, 
but, as the Legislature's Franklin committee was to learn on 
22, 1989, he did next to nothing. In this transcript of his 
legislative testimony, Vlahoulis is questioned by committee 
counsel. 

COUNSEL: As I understand what you told Senator Chambers, 
the information in your notes, which was important, was 
placed in the reports that you generated, is that correct? 



35 



THE FRANKLIN COVER-UP 



vlahoulis: Yes, it was. 

COUNSEL: Now, the conclusion I draw, after reviewing that 
information, is that you really didn't do anything between 
July and late November, except to collect some extraneous 
pieces of information about Mr. King's business interests 
and perhaps about ... his wife's citizenship status. That's 
my conclusion from reading the reports. 



On December 20, 1988, Attorney General Robert Spire was 
quoted in the Lincoln Journal saying that his office had "acted 
promptly and professionally" on all the "sensitive information" 
received on child abuse six months earlier. Yet the Nebraska 
State Patrol, the agency that would be called upon by the 
attorney general in such an investigation, conducted its very 
first investigative meeting on the case on December 19, 1988, 
the day Spire was boasting to the Lincoln Journal about his 
alacrity! 

In the face of official inaction, Carol Stitt and the medical 
personnel responsible for treating Loretta Smith grew con- 
cerned about her safety. She had already been threatened, and 
the new charges she was making put her in even more danger. 

Stitt turned to still another agency, the Douglas County 
(Omaha and surroundings) Attorney's Office, and requested a 
protective order for Loretta. When the Douglas County attorney 
filed the order, however, it said that Loretta was making bizarre 
statements, that she had been on the streets for two weeks, and 
that she was suicidal! Not only were these allegations untrue, 
but they could help ensure that Loretta be discredited in any 
future court appearance. 

The order had an even graver implication, as Senator Cham- 
bers observed during Stitt's December 19, 1988 testimony to 
the Executive Board of the Legislature. 

senator chambers: Neither you nor Miss Hallberg said 
that the child is suicidal. 

STITT: No. 

senator chambers: But if that's in the court record, in 
the petition, an official document and the child winds up 



36 



JUST HOW BIG IS THIS COVER-UP? 

deceased then and if the result of [sic] a suicide then every- 
body would have had prior notice that this child is suicidal, if 
you would, by that report, by that petition and the court order. 

Chambers was also familiar with the person in the Douglas 
County Attorney's Office who filed the order, Liz Crnkovich. 

SENATOR CHAMBERS: Now this is some information that I 
have and maybe you don't, are you aware that Lynne [sic] 
Crnkovich has had information given to her by certain pro- 
fessionals about some of the things that these youngsters 
have been talking about and making allegations and she 
chose to do nothing. Were you aware of her involvement 
in that regard? 

STITT: Yes, I was made aware of that while we were trying 
to see what we could get done in Omaha 

Vlahoulis, the part-time sleuth from the Attorney General's 
Office, later told Franklin committee investigators about an- 
other time Loretta ran afoul of Crnkovich. According to Vla- 
houlis' conversations with Crnkovich in January 1989, Father 
Val Peter of Boys Town "had been approached by Loretta Smith 
and . . . she complained to him that the F.B. 1 . and Crnkovich had 
intimidated her to such an extent while she was at Richard 
Young Hospital that she had not provided them with all the 
information that she knew." 

At the December 19, 1988 Executive Board meeting, Senator 
Loran Schmit asked Carol Stitt what effect the gross mishan- 
dling of her case might have on Loretta Smith. Stitt answered, 
"I'd like to say if the State continues to handle the case the 
way they've handled it, everything that this perpetrator has 
told them is being reinforced. That he has the power, there's 
nothing they can do, nobody's going to help them, and that 
certainly has been what's happened so far." 



37 



CHAPTER 6 



THE DESTRUCTION 
OF COMMONWEALTH 
SAVINGS MODEL 
FOR NEBRASKA 



Inaction by the authorities, a blind eye to children's pleas, 
failure to prosecute, a rush to cover up- all this was happening 
in the heartland state of Nebraska. To understand how this 
could be, requires a good look at state politics during the mid- 
1980s, especially the Robert Kerrey administration of 1983- 
1987. 

Early in the decade, the signs went up, billboard-size with 
flashing neon lights, that Nebraska was now, more than ever, 
a "wide open state," to use the terminology of the organized 
crime-controlled political machines in various parts of the 
United States during the 1920s and 1930s. Mafia control in 
those days was so tight in some cities, that opposition newspa- 
per editors were gunned down in broad daylight. A June 1991 
article in the Minneapolis Star- Tribune recalled, about the 
history of Minnesota, "Alvin Karpis, onetime Public Enemy 
No.l, once said, 'Every criminal of any importance in the 
1930s made his home at one time or another in St. Paul. ... 
If you were looking for a guy you hadn't seen in a few months, 
you usually thought of two places-prison or St. Paul. If he 
wasn't locked up in one, he was probably hanging out in the 
other.' " In order for the city to have this status, veteran St. 
Paul Pioneer Press reporter Nate Bomberg has said, "Every- 
body was in on the take. You can't have an underworld without 
an overworld You can't have the rackets unless you have 



38 



DESTRUCTION OF COMMONWEALTH SAVINGS 

the mayor, the chief of the police, and the county attorney in 
your comer." 

1983 was a banner year for Nebraska's building its creden- 
tials as a modem such safe haven for crimes and perversions. 
That was when the state seized Commonwealth Savings, forc- 
ing its owners, the Copple family, to ante up any and all 
company and personal assets to help redeem depositor losses. 
It was the first year of Bob Kerrey's term as governor of 
Nebraska. 

The case haunts Kerrey to this day. 

In 1990, as the price tag for cleaning up failed savings and 
loan institutions nationwide soared into the hundreds of billions 
of dollars, one of the loudest critics of the Bush administration's 
handling of the matter was freshman Senator Bob Kerrey, 
Democrat of Nebraska. An Omaha World-Herald headline cap- 
tured the clashes: "Kerrey, Fitzwater Trade Allegations Over 
Handling of S&L Crisis." White House spokesman Marlin 
Fitzwater cautioned Kerrey that as many Democrats as Republi- 
cans were involved in the S&L fiasco, and then admonished 
him in personal terms. According to the July 16-22, 1990 
Omaha Metro Update, Fitzwater "added that if Senator Kerrey 
is bent upon making S&L a campaign issue, it's one that could 
work against Kerrey. The White House apparently has some 
files on Commonwealth Savings and State Security Savings, 
but no details were given." 

The mentioned institutions were two of Nebraska's largest 
industrial banks. They collapsed in 1983 and 1984, shortly 
after Kerrey's election as governor. 

Kerrey knows about his vulnerability. Soon after the ex- 
change with Fitzwater, the senator got himself interviewed by 
a friendly World-Herald reporter, to come clean about the 
events of 1983-84. Under the headline "Kerrey: My Errors in 
Insolvencies Will Not Diminish S&L Scrutiny," he admitted 
what he had fiercely denied at the time-that his key adviser 
on the Commonwealth and State Security crises was his close 
friend, business associate, and chief financial adviser, Bill 
Wright. "Regarded by some as one of the cleverest and most 
ambitious financial operators in the state," according to a bro- 



39 



THE FRANKLIN COVER-UP 



chure from the Lincoln-based Concerned Citizens for Responsi- 
ble Government, Wright was also a major shareholder and the 
president of State Security Savings. This relationship, Kerrey 
now said, may have led to "appearances of impropriety," but 
this all happened because "I was new to politics." 

For informed Nebraskans, Kerrey's confession was a bomb- 
shell, as the Metro Update observed: "But what Kerrey-faced 
with the absolute imperative to get his own past behind him 
if he is to have any credible role in the Democratic pursuit of 
President Bush's handling of the national savings and loan 
scandals-told [World-Herald reporter] Kotok is breathtaking 
in implication. It is especially so for those whose depth of 
knowledge takes in the entire fabric of the Kerrey Administra- 
tion: Commonwealth Savings Co., State Security Savings, Ker- 
rey's own panoply of private business dealings, and, finally, 
the creation and uses of the Nebraska Investment Finance Au- 
thority." 

According to information published in the Metro Update 
and other documentation, those implications are that Kerrey 
and Bill Wright used the powers of state government to: 1) 
loot State Security's depositors of at least $4 million and as 
much as $10 million, 2) deprive the depositors of Common- 
wealth of at least $40 million, 3) set up a new state agency, 
with the sole apparent purpose of giving Kerrey and his cronies 
millions of dollars in low interest loans, 4) cheat farmers out 
of $200 million in subsidized loans, and 5) peddle junk bonds to 
investors who thought they were getting high-grade state bonds. 

The voluminous evidence of these activities can be found 
in a 1986 state Senate investigation, which I chaired, of the 
failures of State Security and an Omaha bank, the American 
Savings Company; in 1988 brochures of the Concerned Citizens 
for Responsible Government; in the Omaha Metro Update of 
July 16-22, 1990; in a set of three tightly documented reports 
submitted to the Nebraska Legislature in 1990 by a group of 
depositors from the failed Commonwealth bank, led by Reuben 
Worster of Lincoln and veterinarian Dr. Melvin Bahensky of 
Grand Island; and in a 1991 tort claim filed by myself as 
attorney and on behalf of Commonwealth depositors. 



40 



DESTRUCTION OF COMMONWEALTH SAVINGS 

According to his own account, Bob Kerrey entered politics 
to make money. In September 1981, as he was contemplating 
a run for the Nebraska governorship, Kerrey lamented to busi- 
nesswoman Dana Saylor Robinson, that in business, "You have 
to know someone or cater to this or that politician, to get 
anything. The only way you are going to be able to make any 
money is to be in politics." 

The record shows that, with the advice of financial genius 
Bill Wright, Kerrey fulfilled his ambition at the expense of the 
citizens of Nebraska. 



Late one night in the last week of 1982, Democratic Gover- 
nor-elect Kerrey and Bill Wright summoned Republican Paul 
Amen, the state banking director, to a meeting to ask him to 
stay on in the new administration. Anticipating the request, 
Amen brought with him "our highly confidential, secret, sensi- 
tive list of problem institutions," as he later told my legislative 
committee when we were looking into the State Security and 
American Savings failures. 

High on the list were Commonwealth Savings, controlled 
by Lincoln businessman S.E. Copple and his son Marvin, and 
State Security, whose president and leading stockholder was 
none other than Bill Wright. 

In 1986, testifying before my committee, Amen was asked 
if he hadn't felt a little strange showing the governor this list 
in the presence of Wright, whose own bank was on it. Amen 
replied, "No, Senator Harris, I didn't even think in terms of 
that. I thought in terms of the fact that Bill Wright was the 
Governor's principal adviser and the Governor had wanted him 
present at the particular meeting." 

Wright was a prominent lawyer in Lincoln, a member of a 
wealthy, established family, and one of the rising stars in Ne- 
braska politics during the 1970s. State Security, which he and 
associates acquired in 1978, in a highly leveraged buyout, had 
made many loans to businessman Bob Kerrey. Wright became 
the guiding force behind Kerrey's gubernatorial campaign, 



41 



THE FRANKLIN COVER UP 



headed his transition team, and served as the governor's per- 
sonal counsel. His law firm, Wright, Rembolt, and Ludtke, 
soon became official adviser to the Nebraska State Banking 
Department. 

On October 31, 1983, while Banking Commissioner Amen 
was on the East Coast negotiating for a purchaser to buy the 
troubled Commonwealth bank, Governor Kerrey suddenly is- 
sued a late-afternoon press release which said, "We are monitor- 
ing the activities of Commonwealth; we are looking at that 
institution with more interest than we are the other institutions 
which we monitor." 

The next morning, panicked citizens mobbed the bank. State 
authorities shut its doors by the afternoon. According to a 
release from Concerned Citizens for Responsible Government, 
the Lincoln Star of November 1, [1983] Kerrey himself 
was quoted as saying that he was barred by law from publicly 
indicating how serious the Commonwealth situation might be. 
That is to prevent a public official from creating a run on a 
financial institution. Yet, by his own words on television and 
in the newspapers, Kerrey caused exactly that result." 

Commonwealth could have filed for reorganization under 
the bankruptcy code, to protect its depositors in the wake of 
the run. But Kerrey forestalled that action by securing a legal 
opinion from his appointees at the State Banking Department's 
legal counsel-Bill Wright's law firm-that bankruptcy should 
not be allowed, but that the state should seize the bank. By 
statute, Commonwealth also should have had ten days to find 
new capital, before being seized. The bank had at least two 
offers-the one Amen was working on, and one from a local 
group of investors. S.E. Copple was willing to sell his control- 
ling stock in the bank to this local group for $1, in return for 
an infusion of $8-10 million in capital, in order to save the 
bank. The bank, as Commissioner Amen later testified to the 
Legislature, would have been saved. Some $50 million of 
depositors' funds would have been preserved as well. But 
Kerrey's press release, the resulting run, and the governor's 
refusal to allow Commonwealth to be purchased after its sei- 
zure, preempted that possibility. 



42 



DESTRUCTION OF COMMONWEALTH SAVINGS 

The failure of Commonwealth, the biggest collapse of a 
financial institution in the history of Nebraska, was a human 
tragedy of major proportions. Many of its depositors were 
elderly people, who had their life savings in Commonwealth. 
When it collapsed, some of them were left without even money 
to buy food. By 1991, eight years after the collapse, one-third 
of the depositors have died. Many of them died from heart 
attacks or strokes, within the first 90 days after their bank's 
doors were shut. Seven families with retarded children had put 
their life savings in the bank, to care for the children after the 
parents die; that money was all gone. 



Kerrey claimed to have great compassion for Common- 
wealth's depositors, but his actions spoke otherwise. 

Throughout 1983, the State Banking Department pressured 
Commonwealth president S.E. Copple to put up over $8 million 
of his personal assets and those of his son Marvin, to secure 
unsecured loans that Commonwealth had taken from other 
banks. In one instance, a multi-million dollar property got 
pledged, to secure an approximately $750 thousand loan. These 
were debts to, among others, Bill Wright's State Security Sav- 
ings and the National Bank of Commerce, owned by Kerrey's 
associate Jim Stuart. Now, after seizing Commonwealth, Ker- 
rey's administration pressured the 88-year-old man to dispose 
of whatever personal assets he had left, including his residence, 
to "pay back depositors." The bulk of Copple's substantial 
assets, however, were no longer available to the depositors. 
They had already been taken by Kerrey's friends. 

The Copple family was descended from some of the first 
pioneers in Nebraska. It had a tradition of fierce independence 
from the state's financial establishment, whence Kerrey re- 
ceived campaign funding. The Copples' bank had been a source 
of liquidity for farmers and small and medium-sized entrepre- 
neurs. When Federal Reserve Chairman Paul Volcker doubled 
interest rates to nearly 20%, in the fall of 1979, many Nebraska 
banks, including Commonwealth, landed in trouble. But there 



43 



THE FRANKLIN COVER-UP 



was a decision to attack the Copples, while sparing institutions 
tied to Kerrey. 

The brouhaha over Commonwealth's collapse diverted atten- 
tion from State Security Savings, which Amen testified had been 
in worse shape than Commonwealth. State Security escaped 
the kind of pressure applied to the Copples. Rather, Kerrey's 
permission for State Security to remain open until July 9, 1984 
made possible its "milking and draining" by Bill Wright and 
other bank officers, in the words of our 1986 Senate investiga- 
tion. (That investigative report was unanimously adopted by 
all members of the legislative committee by which it was 
prepared, Republicans and Democrats alike, including some of 
Governor Kerrey's previously staunchest supporters.) 

Then, State Security was allowed to file bankruptcy, contrary 
to the standard set for Commonwealth by Wright's law firm 
via the State Banking Department. Wright's double standard 
was glaring. It was Wright, who took State Security intofederal 
bankruptcy, which shielded it from possible attempts by local 
officials to investigate its affairs or to protect depositors. Yet 
Bill Wright's law firm, acting as official adviser to the Banking 
Department, had prohibited that same course from being fol- 
lowed by Commonwealth, by issuing its opinion that such a 
declaration of bankruptcy by Commonwealth would be illegal. 

At the age of 88, S.E. Copple was stripped of everything 
he owned, sent to prison, and died a pauper, while Bill Wright 
quietly moved out of Nebraska, into a million-dollar mansion 
in Rancho Santa Fe, California. 



While he was closing down Commonwealth, Bob Kerrey 
made money on business deals arranged by the institution he 
allowed to remain open, State Security. 

On April 5, 1983, the governor, Wright and others formed 
a partnership called American Investment Group. The chief 
purpose of AIG was to acquire a choice block of Lincoln 
real estate, the Shoppers Fair shopping center. This business 
opportunity resulted from a maneuver by State Security. Bill 



44 



DESTRUCTION OF COMMONWEALTH SAVINGS 

Wright's bank had loaned businessmen Jerry Joyce and Robert 
Rentfro, the owners of Shoppers Fair, millions of dollars for 
other projects. It threatened to foreclose on all those loans, 
unless Joyce and Rentfro sold Shoppers Fair for a million 
dollars below its assessed value. When Joyce and Rentfro pre- 
pared to sue, State Security looked for another arrangement. 
Ultimately, Shoppers Fair was delivered to the Kerrey group, 
in return for State Security writing off $3 million of Joyce/ 
Rentfro debts. State Security financed the purchase by AIG 
with a loan at 4% under the prime rate. 

The $3 million write-off of Joyce/Rentfro loans and the new 
below-prime loan to enable AIG to acquire Shoppers Fair, 
relieved State Security's depositors of substantial funds. 

Those depositors lost millions in other financial swindles, 
which reveal the brutality of the Kerrey group's actions, master- 
minded by Bill Wright. Wright and others gained control of 
State Security in 1978 by purchasing its stock, through a holding 
company they owned, with a very preferential loan from First 
National Bank of Lincoln (FirsTier Bank, after its 1984 merger 
with Omaha National Corporation); the loan required no per- 
sonal guarantee and carried no personal obligation, meaning 
that if it went "bad" and the company folded, Wright and his 
partners had no obligation to repay. Ultimately, they did not 
repay it. 

Having gained control of State Security, they sold its most 
valuable asset, a downtown Lincoln office building, to them- 
selves (using a disguised corporate name) for one fourth of its 
actual value. Since the depositors really owned the equitable 
value of the building, this transaction alone robbed them of a 
small fortune. Adding insult to injury, Kerrey's friends then 
effectively sold the building back to the selfsame depositors, 
using a long-term lease. The new owners leased it to them at 
the actual value, four times higher than what they had just paid 
for the building! 

On May 28, 1986, with the statute of limitation on prosecu- 
tion for these activities about to expire, several members of 
the Legislature's investigative committee wrote to Banking 
Director James Barbee and Attorney General Robert Spire, 



45 



THE FRANKLIN COVER UP 



urge you to consult immediately with the appropriate law 
enforcement authorities to determine whether criminal prosecu- 
tion is warranted." 

Nothing was done. The disgust of Senators over such patent 
corruption shows up in the transcript of a subsequent hearing. 
Senator Higgins: "I am sick and tired of this pussyfooting 
around with these boys." Senator Schmit: . . . the statute will 
have expired and the people that needed to be protected will 
have been protected, that is putting it very bluntly." 

Senator Higgins, incidentally, was the Legislature's most 
stalwart Democrat and Kerrey supporter. As a member of the 
investigative committee, privy to details that showed just how 
sordid the affair was, even she had had enough. 

The senators subpoenaed Spire and other Kerrey-appointed 
officials, who stated that it was their prerogative to prosecute 
or not, and they chose not to. 

We called Kerrey himself as a witness, and instructed him 
to bring his personal financial statements. According to the 
Metro Update, "Kerrey said he resented the request for his bank 
records. He parried the request by saying that the committee was 
essentially saying, 'It is OK if your banker tells us everything 
they know about you.' Kerrey eventually did consent to appear 
before the committee. Highlights included his denial of im- 
proper influence by William F. Wright. Key decisions of the 
administration were based upon advice from the Department 
of Banking [whose counsel was Wright's law firm] and other 
official channels, Kerrey testified." 

Kerrey's AIG deal was already a scandal when it transpired, 
in 1983. Talking about his business affairs to my legislative 
committee in 1986, the governor claimed that he had taken 
every politician's routine precautions: prepared and executed 
a business trust that naturally moved all the assets physically 
that I owned, all the business assets, away from even indirect 
control." But somehow this did not prevent Kerrey from person- 
ally signing the papers to set up AIG. If it was supposed to 
be a typical blind trust, to shield a public official from knowl- 
edge of how his assets are being managed, Governor Kerrey's 
trust had at least one eye open. Metro Update described it, 



46 



DESTRUCTION OF COMMONWEALTH SAVINGS 

"Kerrey's blind trust: It was his sister, Jessie, and her husband, 
Dean Rasmussen, Kerrey's very active partner in Prairie Life, 
the restaurants and other business deals. How can you have a 
blind trust with a bunch of partners you see maybe every day? 
You maybe eat dinner with them. Or they come over from 
time to time?" 



In November 1983, Kerrey acted quickly to shield himself 
and his associates from investigation during the uproar over 
the collapse of Commonwealth. On November 5, 1983, news 
media reported what was an apparent leak from administration 
sources, that Republican Attorney General Paul Douglas, who 
normally would have handled the Commonwealth investiga- 
tion, was involved in improper Commonwealth loans. Douglas 
was a long-standing friend of the Copples. With impeachment 
proceedings under way, Douglas resigned. 

Kerrey replaced Douglas as attorney general with his own 
man, Robert Spire. (Today, Spire serves as U.S. Senator Ker- 
rey's chief of staff.) To oversee the Commonwealth investiga- 
tion, he named a new special assistant attorney general, David 
Domina, formerly a law clerk in Bill Wright's law firm! 

On November 15, 1983, Kerrey fired Banking Director Paul 
Amen and replaced him with John Miller, whom he had ap- 
pointed to the State Liquor Control Commission in June. Miller 
admitted he had no knowledge of the banking business, telling 
the press, according to the Metro Update, "I can't even balance 
my checkbook." 

The Legislature's Banking, Commerce, and Insurance com- 
mittee, then chaired by this writer, Senator John DeCamp, was 
prepared to investigate the Commonwealth collapse, which 
came under its purview. But Kerrey handpicked a special new 
committee for the job. In a November 21, 1983 letter to the 
governor, I protested Kerrey's actions: "Governor, it would be 
most unfair and unreasonable to expect your own people, Mr. 
Domina, Mr. Miller and yourself, for example, to investigate 
yourselves since you are the administration officials in charge 



47 



THE FRANKLIN COVER-UP 



of the Banking Department and since the Attorney General's 
office is the attorney with the responsibility of providing the 
legal guidance to the Banking Department and to you." 

The ostensible investigation by this made-to-order commit- 
tee turned out as expected. A 1990 report to the Legislature 
by Reuben Worster of Lincoln and other Commonwealth depos- 
itors characterized its findings: "The conclusion of the Domina 
Report was filled with speculation and 'Who Dunks' and the 
final analysis determined that Kerrey was an innocent by- 
stander, Amen and [his assistant in the Banking Department] 
Lake exercised poor judgment, and Douglas was guilty of a 
multitude of crimes surrounding the failure of the financial insti- 
tution." 

Although Commonwealth had been looted before its col- 
lapse, Worster's group charged that post-seizure actions 
planned by Kerrey were even more egregious. In their three- 
volume report, these Commonwealth depositors argued that 
Kerrey had tried to establish, through changes in law and per- 
sonnel, the ability to devalue Commonwealth's assets by 50% 
and then sell them to individuals of his choice, with loans 
financed by a new, Kerrey-appointed agency, the Small Busi- 
ness Development Authority. Although this alleged scheme 
attributed to Kerrey bogged down in legislative resistance, 
Commonwealth assets did get inexplicably devalued by 54%, 
and did wind up in the hands of Stuart and other Kerrey- 
connected creditors, Worster's group has charged. 

Commonwealth depositors got paid only $8.5 million by the 
state, against their $50 million in losses. There was no reason 
for them to have lost a nickel. The bank had assets, mainly in 
real estate, then valued at $50-60 million. The Commonwealth 
property at 40th & Old Cheney in Lincoln, for instance, would 
have been worth $35 million if properly developed, according 
to an estimate given in 1985 by state-appointed receiver John 
Queen, in front of depositors' representative Dr. Breiner and 
attorney John Robinson. At the fire sale after Kerrey's liquida- 
tors devalued Commonwealth's assets, choice properties, such 
as 40th & Old Cheney and the Commonwealth Building, went 
to Jim Stuart's National Bank of Commerce. 



48 



DESTRUCTION OF COMMONWEALTH SAVINGS 



On another project to make millions from the creation of a 
new state body, the Kerrey clique evidently had more success. 
The Omaha Metro Update of July 16-22, 1990 summarized 
the case: 

In 1982, the fortunes of Prairie Life Center, [businessman] 
Kerrey's planned sports center in Lincoln, were at a low 
ebb. His managers were saying in published accounts in the 
Lincoln press that the project was dead. It would not fly, they 
said, because interest rates made it financially impossible. It 
was announced that subscribers to membership had their 
downpayments refunded. 

But then it was 1983 and a miracle. Kerrey was in as 
governor, Wright was his trusted, closest financial adviser. 
Kerrey's announced highest governmental priority became 
the creation of NIFA [Nebraska Investment Finance Author- 
ity], the very body that could breathe new life into Prairie 
Life. 

Three public agencies that had been lending money in 
the areas of agriculture, home building, and industry were 
to be consolidated into one, into NIFA, which was to be 
created as a new public authority. 

And there was one additional area of lending; loans could 
now be made to commercial enterprises. Suddenly, Kerrey's 
enterprise, Prairie Life, which couldn't fly in 1982, could 
soar in 1983. Suddenly, it became economically feasible. 
The senator and his partners got a loan of $2.55 million, 
some 4 percentage points under the going rate 

After the bill to set up NIFA passed, Kerrey appointed all 
nine members of its board, including Bill Wright. One of NI- 
FA' s very first loans was to Prairie Life. Four days after ap- 
proval of this loan to Kerry's project, Lancaster County Repub- 
lican Chairman Randy Moody wrote to Senator Yard Johnson, 
chairman of the Legislative Council Executive Board, about 
the obvious conflicts of interest. "This insider deal seems a 
slap in the face of the taxpayers and business community of 
the state of Nebraska," Moody wrote. "It's obvious the governor 



49 



THE FRANKLIN COVER UP 

has taken advantage of his elected position to line his pockets 
and he, his sister and brother-in-law [partners in Prairie Life] 
are laughing all the while." 

Metro Update reporter Bob Hoig also came to me with some 
questions about NIFA: 

This writer went to former Sen. John DeCamp, who spear- 
headed NIFA into existence in 1983 as head of the Banking 
Committee. What, the Omaha Metro Update asked Def.arnp, 
has NIFA acomplished that it could not have accomplished 
as three separate agencies, even if the agencies had to be 
amended in some way, except to make the type of loan that 
went to Kerrey and his partners and that, of course, allowed 
Kerrey to appoint the original board? 

DeCamp said he could think of nothing. DeCamp is a 
Republican. He was once close to Kerrey but he said they 
are not close now. He knows NIFA as well as any legislator, 
past or present. And he can think of no reason for its existence 
other than to make a new class of loan and to allow Kerrey 
to appoint its board. 

In 1986, NIFA marketed a $200 million bond issue, for the 
avowed purpose of funding low-interest loans to Nebraska's 
distressed farmers. Kerrey negotiated a deal with New York- 
based junk bond peddlers Drexel Burnham Lambert, for Execu- 
tive Life Insurance Company of California to market the issue. 
(Executive Life failed in 1991 due to its Drexel-linked losses.) 
Drexel and associated firms earned their fat fees, the value of 
the bonds collapsed, and not one dollar out of the $200 million 
ever reached a Nebraska farmer! According to a federal law 
suit filed in April 1990 by holders of the devalued bonds, the 
main purpose of the financing was never to provide funds to 
farmers, but to provide "inexpensive funds to Executive Life 
for reinvestment, . . in junk bonds " 

While the actions of Kerrey and his associates outraged 
legislators and tens of thousands of depositors who suffered, 
there was deafening silence from Nebraska's major press, the 
Omaha World-Herald, the Lincoln Journal, and the Lincoln 
Star, The. Metro Update of July 16-22, 1990 gave some insight 
into why: 



SO 



DESTRUCTION OF COMMONWEALTH SAVINGS 



John Gottschalk, an important World-Herald figure in the 
business sense since 1975 and publisher of the newspaper 
since last January, has invested through his daughters in 
Kerrey's ventures since Kerrey's earliest days in business 
in the early 1970s. The daughters, now ages 15 and 23, own 
a $50,000 share in the Prairie Life Center in Omaha. 

As for the Lincoln Journal-Star, one of its three board mem- 
bers since 1981 has been Bill Wright. 



From covering up financial swindles, it was a short step to 
covering for prominent businessmen who were involved in 
organized drug peddling or for politicians and publishers with 
a weakness for young children. Reviewing the Commonwealth 
case and the Franklin Credit Union scandal side by side, it is 
striking how the casts of characters overlap. Key personnel in 
the Kerrey-appointed apparatus, who snowed the Common- 
wealth depositors, will intervene again as Franklin unfolds. 

The state regulators in charge of the Commonwealth receiv- 
ership were John Queen and Robert Kirchner. Deputy receiver 
under Queen was one Kent Johnson, Commonwealth's former 
comptroller and the state's star witness against S.E. Copple; 
Johnson was to be indicted in 1990, for stealing over one 
million dollars of Commonwealth depositors' funds, during the 
receivership. Queen and Kirchner will get a federal contract 
to analyze the Franklin Credit Union in 1989. On this new 
assignment, they will hire Johnson once again. 

Kirk Naylor was special prosecutor for a grand jury probe of 
Attorney General Paul Douglas and his ties to Commonwealth; 
Douglas' resignation cleared the decks for Kerrey's men. Jerry 
Lowe was a Lincoln police officer, without prior training in 
financial investigations, assigned to go through the records of 
Commonwealth. As the first counsel and investigator, respec- 
tively, for the Legislature's Franklin committee, Naylor and 
Lowe will quit suddenly in 1989 in what some senators see as 
an attempt to torpedo the committee. Naylor will argue that 



51 



THE FRANKLIN COVER UP 



Carol Stitt of the Foster Care Review Board lied, in her reports 
of child abuse. 

Richard G. Kopf was legal counsel for the special legislative 
committee set up on Commonwealth, bypassing the Legisla- 
ture's banking committee. Prior to this starring role, Kopf was 
a country attorney of no significance in a country town called 
Lexington, Nebraska. As a United States magistrate-Lincoln 
sources insist the appointment was a reward for the Common- 
wealth job-Kopf will issue, and seal, the order that closes 
Franklin's doors in 1988. An order from Kopf will get Larry 
King out of town at a critical moment in 1990. Kopf will 
preside over the federal grand jury that indicts victim-witness 
Alisha Owen later that year. And finally, surprise of surprises, 
on August 27, 1991, Kopf will vault ahead of a host of qualified 
attorneys to be in the lead position for appointment as a new 
federal judge. 



52 



CHAPTER 7 



THE FRANKLIN 
COMMITTEE 



On Friday, November 4, 1988, four days before George Bush 
was elected President of the United States, agents of the Federal 
Bureau of Investigation, the Internal Revenue Service, and the 
National Credit Union Administration (NCUA) swooped down 
on the north Omaha headquarters and branches of the Franklin 
Community Federal Credit Union and its affiliate, the Con- 
sumer Services Organization, and shut their doors. 

It was a case of swindles on a vast scale. 

At the time of the raid, the Franklin Credit Union listed $2 
million in deposits, of which $1.2 million was in certificates 
of deposit. Yet within a week of the doors being padlocked, 
claims were filed for $15 million in CD's. Ultimately, close 
to $40 million was determined to be missing from this credit 
union that claimed to have a scant $2.6 million in total assets. 
The obligations were listed on a second, secret set of books. 



In Nebraska's unicameral Legislature, a handful of senators 
moved to begin a probe into what happened to the Franklin 
money. The two main initiators of this legislative investigation, 
the one that would persist when law enforcement balked, were 
Senator Ernie Chambers, Democrat of north Omaha, and Sena- 
tor Loran Schmit, Republican of Bellwood. 

Senator Chambers represented the district where the Franklin 
Credit Union was founded in 1968, by community activists, 
with the proclaimed goal of making credit available for busi- 



53 



THE FRANKLIN COVER-UP 



nesses and individuals in the African-American community of 
north Omaha. (It was by qualifying as a "low income credit 
union," that Franklin could sell certificates of deposit to non- 
members, the means by which it swindled millions.) Larry 
King became its manager in 1970. 

Chambers was in receipt of numerous complaints against 
King. People talked about his high spending ways, and about 
the teenaged boys who got in and out of limousines with 
King. During 1988, Chambers received some of the Foster 
Care Review Board reports, that abused children had named 
Larry King. 

Senator Schmit, as a Republican, knew of suspicious behav- 
ior by King out of town. In early years, Larry King was a 
Democratic Party activist, and headed Black Democrats for 
McGovern in 1972, but after he shifted registration in 1981, 
King made his name in the GOP. 

As Schmit's friend and personal attorney, I shared with him 
my own recollections about how I had noticed the two faces 
of Larry King, which I later summarized in writing: "I had 
personally been a delegate to the Republican National Conven- 
tion in 1984 and 1988 and been a witness at the massive 
spending and luxury at the Larry King parties in both Dallas 
and New Orleans, and as chairman of the legislative Banking 
Committee had observed with a jaundiced eye the Franklin 
operation, which no information could be obtained on because 
it was a Federal Institution." 

At these two conventions, I attended the two biggest parties 
ever sponsored by Larry King. It was the first of these that 
brought King to my attention. 

The year was 1984. 1 was attending the Republican National 
Convention in Dallas, Texas, having been elected as a delegate 
pledged to support Ronald Reagan. Nebraska was seated in 
the front row in the convention hall. I had the first seat in the 
row. The feeling of excitement and power was awesome. 

The man sitting next to me, Senator Rex Haberman of Impe- 
rial, Nebraska, informed me that the portly black man standing 
at the podium as the convention was set to begin, was from 



54 



THE FRANKLIN COMMITTEE 



Nebraska and was the fastest rising black star in the Republi- 
can Party. 

"Who the blazes is he?" 1 asked, "And how come 1 haven't 
heard anything about him?" 

"Larry King," Senator Haberman told me, "and you and 1 
are attending his party tonight." 

had planned on going to a good movie," 1 told Haberman. 

"Can't," Haberman explained. "Not if you are going to be 
a good Republican. You are from Nebraska and this is a party 
being put on by a Nebraskan to honor another black Nebraskan, 
DuBois Gilliam, who is going to be getting one of the highest 
appointments any black person has ever gotten in government. 
You've got to be there." 

So, we went. I drove Rex out to the party, which was being 
held at Southfork Ranch, famous as the setting for the TV 
show "Dallas." 

1 1 was the most impressive party I have ever witnessed. The 
attendance by top politicians was remarkable; names and faces 
you only hear or see on television were there in number. At 
the center of the excitement was Larry King. Draped over him 
like a blanket throughout the evening was a heavyset woman, 
who 1 learned was Maureen Reagan, the president's daughter. 

From what I saw, this party had to have cost far more than 
the one or two hundred thousand dollars I have heard as an 
estimate. At a public meeting in 1990, I recalled my thinking 
at the time: "I got to wondering: Here's this little credit union, 
and here's Larry King, obviously in the highest reaches of the 

Republican Party And I just wondered, how does he do 

this supposedly on a salary of $16 thousand a year?" 

Such conspicuous consumption as I had witnessed, earned 
Larry King the tag "flamboyant" in just about any mention of 
his name. The NeVA's civil suit against King, filed November 
14, 1988 in the wake of the raid, put some price tags on his 
lifestyle. It itemized $4 million of King's personal expenditures, 
paid out of credit union funds during the previous thirteen 
months, including: $1 million in American Express bills, 
$148,000 to Old Market Limousine, $70,000 to Floral Con- 



55 



THE FRANKLIN COVER-UP 



cepts, $61,000 to Mastercard, $39,000 to Citibank, $37,000 to 
himself, $27,000 to Omaha Jewelry, and so on. 



As the disclosures began to flow, on how King's $2 million 
dollar credit union had tens of millions of dollars in deposits 
unaccounted for, and on the secret second set of books, I 
suggested to Senator Schmit that he talk to some other legisla- 
tors about investigating whether some state laws were violated. 

Why was I concerned? Because, from my experience as 
chairman of the Banking, Commerce, and Insurance Committee 
of the Legislature, I knew that with all the regulatory controls 
existing for a federally insured institution, it was impossible 
for such a theft to occur without cooperation by higher up 
officials. Larry King could only have accomplished this massive 
theft with the help or cooperation of regulatory officials or 
politicians at the highest levels. That meant that institutions of 
government must have been compromised. 

Senator Schmit had his own reasons for thinking that a 
legislative probe of the Franklin collapse was in order. He had 
heard from friends of his in the black community, that Larry 
King spent money like a drunken sailor, but was not making 
any loans in the community. 

When I discussed a possible investigation with Schmit, I 
had no idea that anything other than theft, and the possible 
protection of illegal financial transactions, would be involved. 
As the investigation was launched, no one, except possibly 
Senator Ernie Chambers, knew where it might lead. 



On November 18, 1988 the Legislature passed Schmit's 
resolution in favor of an investigation. In front of special hear- 
ings of the Legislature's Executive Board, the strands of evi- 
dence against Larry King were finally pulled together, for the 
first time, before officials who would pay attention. 

After the first session, on December 12, 1988, Senator 



S6 



THE FRANKLIN COMMITTEE 



Chambers made a dramatic announcement about the probe. 
The investigation would go into not only financial wrongdoing, 
he said, but also the physical and sexual abuse of children by 
persons connected with Franklin. People holding official jobs 
might be affected, added Senator Schmit. 

At the three and a half hour Executive Board hearing on 
December 19, 1988, Carol Stitt, Dennis Carlson, and Burrell 
Williams of the Foster Care Review Board summarized the 
abuse complaints centered around Franklin's top officer. They 
presented their files on the Webb foster home and on Loretta 
Smith. 

CARLSON: The nature of these allegations are something 
that is going to shock the Committee. They deal with cult 
activities, they deal with sacrifices of small children, they 
deal with sexual abuse, and there's a correlation between 
these two different reports. We have, the Boys' Town report 
. . . prepared by a worker from Boys' Town named Julie 
Walters, . . . (which) contains the allegations of the children 
that were in the Webb foster home, Nelly primarily. Years 
later, well, two years later, we have Loretta Smith in.Richard 
Young Hospital who's making allegations against Larry 
King and as far as we know there is no relationship between 
Nelly and Loretta Smith. . .. Both reports talk about the 
Omaha Girls Club, both reports mention a specific individual 
who is the superintendent of schools 

SENATOR REMMERS: [T[he question that came into mind, 
it's been in my mind since you've been testifying and I 
think you've answered part of it just now, is you're talking 
about about these abuses from children from Boys' Town 
and Girls' Club and so forth, now is there a common thread 
that goes over here to the Credit Union deal that we are 
investigating? In other words to the Franklin Credit Union? 
Is there a common thread there that kind of leads to that? 

CAROL STITT: Well, the common thread is Larry King. 

SENATOR REMMERS: Yes, that's what I mean. It all goes 
back to him? OK. 

CAROL STITT: Yes, he seems to be more the organizer, or 
the high-class pimp, I mean if that helps fit this together. . . . 



57 



THE FRANKLIN COVER UP 



Stitt also clarified what she had written in her June 1988 
letter to Attorney General Spire, about a Kansas City connection 
of Larry King. She testified that she had cross-checked with 
the Kansas City detective, who reportedly inquired of Kirstin 
Hallberg about when Nebraska was going to crack down on 
King. The officer, said Stitt, "confirmed that Larry King had 
been there, had contributed money to a group home and when 
he left, three boys came forward and said that they had been 
abused by him while he was there." 

The Executive Board also received from the FCRB the hand- 
written report by Julie Walters, on her interview with the teen- 
aged victims during 1986. In the December 21, 1988 Omaha 
World-Herald, reporter James Allen Flanery recounted a tele- 
phone interview with Walters at her home in another state, in 
which she told him how their testimony had seemed at first 
"too bizarre to be true." But the more experience she gained 
with troubled children, Walters added, "working in probation, 
I'm more sure than ever that there is more truth than not in 
their accounts. The conclusion I reached was the kids I spoke 
with were not lying." 

What the senators heard at the closed December 19, 1988 
meeting shook them to the bone. "The information brought tears 
to my eyes," Schmit said, according to the Lincoln Journal. "I 
do not cry easily and I was not the only person that was moved. " 
Chambers echoed the witnesses' outrage about delays: "With 
this type of information it is inexcusable that action had not 
been taken of an investigative nature. People were not contacted 
that should have been. Leads were not followed up that should 
have been followed up. My feeling is that the whole thing is 
being sat upon and nothing was done." 

The question of a cover-up of Franklin-linked crimes came 
up at the outset, in this way. Omaha Police Chief Wadman 
and state Attorney General Spire offered a lame protest. "Every 
step that should have been taken was taken," Wadman told the 
Journal. Spire said, "We did receive some sensitive information 
in July. My office acted promptly and professionally and noth- 
ing was sat on. I am confident that law enforcement-both 
federal and state-is doing its job in the situation " 



S8 



THE FRANKLIN COMMITTEE 



The Legislature's Franklin committee hired its first investi- 
gator, former Lincoln policeman Jerry Lowe, in February 1989. 
Attorney Kirk Naylor came on as Special Counsel. On February 
15, Lowe sent a memo to the committee on the results of 
his first comprehensive evaluation of the case, including its 
handling by law enforcement. Lowe wrote: 

This matter is indeed a complex and complicated one, com- 
mencing with the closing of the Franklin Credit Union . . . 
and mushrooming into a situation where additional allega- 
tions (other than the financial improprieties) have arisen, 
including influence peddling, child abuse and neglect, child 
sexual abuse, pornography, substance abuse, homicide, and 
inaction and possibly malfeasance on the part of law enforce- 
ment agencies, public agencies, and public officials for 
events dating several years back. More importantly, there 
seems to be a growing public perception that many of the 
affected agencies and/or officials are participating in a cover- 
up The task which the Committee has undertaken will 

not be an easy one 

The allegations regarding the exploitation of children are 
indeed disturbing. What appears to be documented cases of 
child abuse and sexual abuse dating back several years with 
no enforcement action being taken by the appropriate agen- 
cies is on its face, mind boggling. 

In this and other early reports, Lowe made clear that every 
aspect of the Franklin case was politically hot. Larry King had 
become wealthy and influential thanks to quite a number of 
"big people," he commented. Moreover, Lowe reported, there 
were indications that King was involved in guns and money 
transfers into Nicaragua, of involvement by the CIA, and possi- 
bly "a White House connection." There appeared to be "some 
type of connection between the money missing [from Franklin], 
the crisis in the Savings and Loans, and the funneling of money 
to Haiti and Nicaragua." 

Lowe wrote that there was evidence Omaha Police Chief 



59 



THE FRANKLIN COVER-UP 



Robert Wadman had stayed at Larry King's residence in Wash- 
ington, D.C. 

Lowe retraced the leads contained in the documents assem- 
bled by the FCRB. In March, he interviewed Loretta Smith 
three times. In April, he talked with Cornelia (Nelly) Patterson, 
who had taken back her original name after she escaped from 
custody of the Webbs. 



With Lowe's investigative reports in hand, the Franklin com- 
mittee convened hearings. When some state officials were 
called before them, the senators met with a stone wall. 

Testifying on June 22, 1989, Attorney General Spire ap- 
peared still unchastened. Just as his office had dallied in the 
face of Carol Stitt's plea for action on complaints against Larry 
King the year before, Spire now said about Franklin-linked 
child abuse, that "based on conclusions and reports of the FBI, 
the Omaha Police, and the Nebraska State Patrol, all three of 
those have concluded that the reports do not have substance. 

Someone was working at cross-purposes outside the hearing 
room, as well. 

While the Legislature's Franklin committee was getting 
started at the end of 1988, the NCVA selected a firm called 
Financial Advisory Group, of Council Bluffs, Iowa, to make 
its own determination about what had happened to Franklin's 
missing millions. FAG was a partnership formed by John Queen 
and Robert Kirchner, whose earlier appointments included the 
one they got from Governor Kerrey -state regulators to oversee 
the liquidation of the Commonwealth Savings and Loan. In 
their 1989-1990 audit of Franklin Credit Union, Queen and 
Kirchner would conclude that Larry King spent nearly all of 
it on flowers, limousines, gold watches, and his generally ex- 
travagant lifestyle. 

Even as he proceeded with the audit of Franklin, Queen was 
serving during 1990 as deputy receiver for Commonwealth, 
overseeing the liquidation of the bank's remaining assets and 



60 



THE FRANKLIN COMMITTEE 



the disbursement of the proceeds. On August 14, his chief 
assistant in the receivership, Kent Johnson, was arrested by 
the FBI for stealing over a million dollars in Commonwealth 
funds. Although Queen's co-signature was on every check 
Johnson wrote to steal the money, Queen claimed that his name 
had been forged. His career, in any case, was tightly intertwined 
with Johnson's. Johnson worked for him in the Commonwealth 
receivership, on the Franklin audit, and at an Omaha corporation 
he owned, Phoenix Sign Corp. This was a venture Queen 
launched by buying up the assets of Globe Neon, a bankrupt 
firm. One of Queen's fellow holders of a $50,000 share of 
Globe Neon before it folded, was none other than Larry King ! 
Queen and Kirchner enjoyed the sympathy of investigator 
Jerry Lowe, who wrote in his February 15, 1989 case summary 
for the Franklin committee: 

A private consulting firm headed by Omaha residents John 
Queen and Bob Kirchner, both formerly associated with the 
receiver for Commonwealth Savings in Lincoln, Nebraska, 
was retained by the National Credit Union Association 
(NCUA), in early 1989 and given the responsibility to trace 
all the funds flowing into and out of the Franklin Credit 
Union. ... I am familiar with both Mr. Queen and Mr. 
Kirchner due to my involvement as a Lincoln Police Depart- 
ment investigator in the Commonwealth matter. ... I can 
personally attest to the thoroughness and capabilities of Mr. 
Queen and Mr. Kirchner and the people assisting them and 
believe an association with them would save us an enormous 
amount of time in following the money. 



I have been Senator Loran Schmit's personal attorney for a 
number of years. When we were both senators, we frequently 
worked together on major issues. At other times, such as when 
we disagreed on the issue of telephone deregulation, we led 
opposite sides, and fought each other tooth and nail. 

During the early months of the legislative investigation of 
Franklin, I personally had serious doubts as to the validity of 



61 



THE FRANKLIN COVER-UP 



what was being alleged. I provided a minimum of legal advice 
to Senator Schmit during this period, but he did insist that I 
be available to provide him such advice. 

Schmit had the experience of a previous investigation, in- 
volving drug-related matters and the State Patrol, which ended 
up with him and other senators, including myself, being sued 
by some of the individuals investigated. He wanted to make 
sure that he made no error that would cause any legal liability 
for him. Even though we had won that earlier suit against us, 
Senator Schmit wanted to exercise all caution, to protect himself 
from lawsuits. Therefore, like many other state and national 
politicians, he quite properly had private legal counsel-me. 

In the spring of 1989, after the Franklin committee had been 
conducting investigations for some time, Senator Schmit sought 
my legal advice. He wanted to know the legal liability involved, 
if he supported a planned report of the committee, which was 
to suggest that there was child abuse committed by prominent 
individuals-not to be named-which had not been properly 
investigated by agencies of government. 

I asked for no names and he provided no names of the 
individuals he was talking about. In point of fact, there were 
enough rumors floating in the legislative corridors and on the 
streets of Omaha, that at least a dozen prominent persons could 
have been the subject of these accusations. 

I gave him the same advice then, that I would give now: 
"Accusations of child abuse are the worst accusations you can 
make against an individual. That is because, no matter what 
the truth of the matter, once the accusation is made, it will 
never be able to be rubbed completely off, even if the individual 
accused is as innocent and pure as can be. Therefore, before 
you sign your name to anything that suggests that there is 
serious child abuse or before you suggest that an agency of 
government has failed in its duty to find or investigate child 
abuse, make sure you have the smoking gun that establishes 
that is what actually occurred. Not just for your legal protection, 
but because that is the right thing to do. To falsely accuse of 
child abuse is a terrible thing. To cover up child abuse, is worse 
than falsely accusing." 



62 



THE FRANKLIN COMMITTEE 



I had my own personal experience of a false accusation of 
child abuse, which still bums in my soul. It was also a hideous 
example of the use of political office to intimidate, silence or 
destroy political enemies. 

The year was 1984, early January. I had announced my 
intention to run for the United States Senate. As chairman of 
the Legislature's Banking Committee, I was actively seeking 
to investigate the collapse of Commonwealth Savings, which 
had just occurred. In an Associated Press listing of the ten 
most powerful people in Nebraska, as ranked by media editors 
and publishers, I was number 5, behind the governor, U.S. 
Senator JJ. Exon, Omaha World-Herald publisher Harold An- 
dersen, and University of Nebraska President Ronald Roskens. 
Polls showed me as the leading candidate for the Republican 
senatorial nomination. 

Then, I received a message from Republican Party leaders. 
It was simple: "GOP strategists at the highest levels believe 
this is the year the Republicans can beat J.J. Exon. Opinion 
poll analysis shows that such a victory can only come, if the 
candidate is a woman and has no political 'baggage.' (Remem- 
ber, 1984 was the year of Democrat Geraldine Ferraro's candi- 
dacy for U.S. Vice President, the 'Year of the Woman' in 
politics.) Republican leaders are fearful that you, John DeCamp, 
will be able to win the primary, but because of 'baggage' 
and controversiality, you will not beat Exon in November. 
Therefore, Republican leaders ask you to withdraw from the 
primary. If you do not drop out voluntarily, you will have to 
be stopped some other way. And stopped you will be, because 
this race means so much to Republican leadership, at the highest 
levels in Washington." 

I did not listen. I continued to campaign for the Senate seat. 

Shortly thereafter, a tenant in one of my apartments, who 
was delinquent on her rent, lodged an anonymous complaint 
to the Nebraska Department of Social Services. She charged 
that I and my wife had "abused" my young daughter when she 
was five years old. A picture in a family photo album, showing 
my daughter in a pose like the Coppertone baby ads, was the 
basis for the complaint. 



63 



THE FRANKLIN COVER-UP 



Two investigations conducted immediately, one by the DSS 
and one by the Lincoln Police, found there was no child abuse 
and so reported. 

But a County Attorney, Mike Heavican, took matters into 
his own hands. Heavican was on the Republican search commit- 
tee for a senatorial candidate, which ultimately picked a woman 
with no "baggage," and she lost to Exon. He also was someone 
whose name had come up as my Senate Banking Committee 
attempted to start probing the Commonwealth and State Secu- 
rity matters, as someone who may have granted illegal tax 
favors to involved parties. 

Heavican filed a petition, alleging that I and my wife had 
abused our daughter in the way we were educating and raising 
her. It was a civil, not a criminal, filing, but I am sure it was 
designed to gain statewide publicity. 

Heavican's action also exemplified how a public position 
can be abused. It comes as a shock to most Americans, that 
the lowliest county attorney has absolute immunity when he 
files complaints or charges against somebody, even if he does 
so knowing them to be false. His automatic immunity is sup- 
posed to protect the prosecutor, as an institution of government, 
from being deterred from effective action by the specter of 
future lawsuits. The abuse of this institutional privilege can be 
terribly destructive. 

Months of investigation resulted in a legal opinion from 
Judge W.W. Nuernberger, that there was no child abuse. Nuern- 
berger concluded that if Mr. and Mrs. John DeCamp were 
guilty of child abuse, then so were a lot of families and so 
was the late President Kennedy, and perhaps every family in 
Nebraska would have to destroy its photo albums, if I were 
considered guilty of anything. 

While the investigation was under way, media coverage 
continued to smear my name with the charges. I maintained 
that the phantom child abuse was concocted by Heavican, 
using the County Attorney's office, for the political purposes 
of knocking me out of the Senate race and stopping my Com- 
monwealth/State Security investigation. Six years after these 
horrible events, my suspicions were confirmed. 



64 



THE FRANKLIN COMMITTEE 



On March 17, 1990, the Kansas City Star reported on the 
DeCamp child abuse allegation: 

. . . Roland Luedtke, a former lieutenant governor and the 
mayor of Lincoln from 1983 to 1987, launched his own 
review of the charges. "The report that came back to me 
was that [DeCamp] was pure as the driven snow," Luedtke 
said, but, he added, whoever may have had it in their mind 
to get rid of DeCamp "accomplished their purpose." 

My 1984 ordeal came to mind in the spring of 1989, as 
I insisted to Senator Schmit that he exercise caution in the 
Franklin case. 



Senator Schmit offered an amendment to the committee 
report, written by himself, which stated, in essence, that at this 
point in the investigation, the legislative committee did not 
have the smoking gun that would establish the truth of any 
of the child abuse allegations or the failure of institutions 
of government. 

In July 1989, a controversy broke out on the Franklin com- 
mittee, over Schmit's amendment and the course of the investi- 
gation. Some members maintained that Senator Schmit was 
not doing enough to follow up the child abuse. Schmit rejoined 
that the information gathered thus far by Lowe, while useful, 
was mostly second-hand, and that the committee should follow 
the advice he had been given by a friend in law enforcement: 
"Follow the money trail." There is almost no important crime 
that can be committed, said Schmit, echoing his friend's advice, 
without spending money, and spending money leaves a paper 
trail. It should be possible to move from hearsay to court- 
admissable evidence such as checks, credit card receipts, and 
flight manifests. 

Senator Chambers and Senator McFarland departed from 
the committee. Investigator Lowe and Counsel Naylor resigned. 

Schmit and the remaining four other members of the Franklin 
committee-three farmers, a plumber and a grandmother, as 



6S 



THE FRANKLIN COVER-UP 



Schmit described them-hired private investigator Gary Cara- 
dori, a former state patrolman, to replace Lowe in August. 

In a review of his work for the committee, Caradori recalled 
his first impressions: 

From the onset it was apparent that I was up against a barrier 
regarding mistrust of the Franklin Legislative Committee. I 
was told repeatedly that people were afraid to divulge any 
information, not only because of retribution of the alleged 
perpetrators, but also because they feared they would be 
publicly discredited by the Omaha World-Herald. People 
were also becoming discouraged by the lack of progress 
made thus far on the investigation and they translated this 
to mean "cover up." 

Initially, the reports which Mr. Lowe had generated were 
reviewed in detail. It was evident that while there were a 
large amount of reports generated, that very little of sub- 
stance had been gained by him regarding firsthand informa- 
tion. It was then decided that, while secondhand information 
had been valuable in that it presented an idea of the possible 
scope of abuse going on, that it was more important to locate 
individuals who had actually been abused and participated 
in the various activities that comprise this case. 



66 



CHAPTER 8 



"SOMEBODY HAS TO 
TELL THE STORY" 



Caradori did find victims who would talk. Four of them allowed 
him to videotape their stories, in nearly 30 hours of sessions 
during late 1989 and early 1990. These interviews contained 
detailed allegations of sexual abuse, drug usage, pornography 
and other crimes by prominent Omaha citizens. Implicated, 
among others, were individuals already named by Nelly and 
Kimberly Webb, Brenda Parker, and Loretta Smith, as abusers 
or pornographers: Rusty Nelson, Deward Finch, Larry King. 

What these victim- witnesses related became the central mat- 
ter of the Franklin case, but nobody except for a few law 
enforcement personnel, state senators, and grand jury members 
has viewed the Caradori tapes. Snippets were aired on television 
in Omaha. With their contents largely unpublicized, the tapes 
became a target of speculation and denunciation, rumor and 
doubt. 

The interviews are reported here for the first time in consider- 
able detail. The excerpts that follow are from Caradori' s written 
precis of the interviews, which include his notes on discrepan- 
cies in the testimony, corroborative details, and ideas for follow- 
up investigation. 



On October 30, 1989, Gary Caradori and his assistant Karen 
Ormiston went to the Women's Reformatory in York, Ne- 
braska, to interview 21-year-old Alisha Owen, who was incar- 
cerated there on a bad-check conviction. Caradori had had 



67 



THE FRANKLIN COVER-UP 



Owen's name on file for some months, as a potential lead. He 
noted in his daily report for October 30: 

Ms. Owens [sic] was informed of the purpose of our visit 
and was asked for her cooperation in the matter. Ms. Owens 
indicated, after a three-hour interview, that she had been 
heavily involved with various individuals in Omaha, includ- 
ing former members of the Franklin Credit Union. She indi- 
cated that she was also involved with other minors involved 
in pornography and homosexual acts involving various peo- 
ple in Omaha. Several of the individuals she mentioned were 
Alan Baer, Harold Andersen, and also former Police Chief 
Robert Wadman, who had participated in many parties. It 
should be noted that Alisha also indicated that Mr. Wadman 
is a pedophile. 

Contrary to impressions that the Omaha World-Herald tried 
to convey, Alisha Owen not only did not seek out Caradori, 
but she told him only a fraction of the story at that first meeting. 
As she later described to the legislative Franklin committee, 
she was extremely reluctant to get involved at all. After Cara- 
dori left, she contacted the prison psychiatrist, who directed 
her to Superintendent Lawrence Wayne. He advised her to tell 
the truth and to cooperate with the Franklin committee. 

Caradori's daily notes for November 4, 1989 record what 
happened next: 

Upon arriving from out-of-state on the above date, this writer 
received word that Alisha Owens had called this writer in 
an attempt to reach me regarding a meeting that I had con- 
ducted with her previously. Upon receiving this information, 
arrangements were made to speak with Alisha by tele- 
phone. '" 

Alisha went on to state that she did not relate to me all 
of her experiences during the first time that we had met 
because she was "unsure" of this writer. She stated that she 
now wanted to come forward with the information that she 
had previously withheld. Specifically, she indicated that she 
was one of the minors involved in flights to other states, 
and she knew of other minors who were on these flights also. 



68 



"SOMEBODY HAS TO TELL THE STORY" 

On November 7, Caradori and Ormiston proceeded to York 
prison and took a sworn video statement from Alisha. The 
taping lasted from 11:38 a.m. until 10:00 p.m. In addition to 
the video record, Caradori made an annotated transcript, which 
is excerpted here. 

Alisha Owens [sic] 

After pursuing many leads, on October 30, 1989, this writer 
contacted Alisha Owens at the Women's Reformatory in 
York Nebraska. I spoke with Alisha for approximately three 
hours, during which time she indicated that she had been 
heavily involved in pornographic and sexual activity with 
various individuals in Omaha, including former personnel 
of the Franklin Credit Union. During this discussion with 
Ms. Owens she initially indicated that homosexual activities 
also occurred involving Alan Baer, Harold Anderson [sic] 
and Robert Wadman. 

It should be noted that Ms. Owens remitted this informa- 
tion without being directly questioned about these specific 

individuals . Following is the information gained from 

Alisha during the videotaped statement [of No v. 7]. 

During the course of the statement, Alisha stated that she 
first became involved with Larry King in August of 1983. 
Alisha was 14 years old at this time. She indicated that she 
met Larry King through some boys from Boys' Town, among 
them Mark Powers*. Mark had invited her to a party that 
next Friday night. 

This first party was held in August of 1983 at a Twin 
Towers penthouse. Alisha arrived with Troy Boner and Mark 
Powers at approximately 10:00 p.m. in a car that Troy was 
driving. Present when they arrived at the party were Larry 
King, Bob Wadman, Alan Baer, Harold Anderson, and other 
adults that Alisha did not identify at this time. . .. Alisha 
estimated that there were approximately six adults and 20 
minors. Mark Powers had told Alisha prior to going to the 
party that there would be marijuana, alcohol, and so much 
cocaine available at this party that "she would think it's 
snowing." . . . Alisha stated that the party was held at Alfie 
Allen's apartment in this building 



69 



THE FRANKLIN COVER-UP 



There was a "professionally made" pornographic tape 
showing portraying two males, approximately age 17, engag- 
ing in homosexual acts. 

Alisha observed Larry King and Larry (Last name un- 
known [Lnuk], black youth) going into one of the bedrooms. 
She observed later when the black youth emerged from the 
bedroom that he was tucking in his shirt and fastening his 
pants. Alisha also observed Alfie Allen going in and out of 
the bedroom numerous times. She observed a young boy 
approximately 14 years old sitting on Harold Anderson's 
lap. She then observed this boy and Harold Anderson going 
into one of the bedrooms. 

Alisha observed Alan Baer using "two lines" of cocaine 
and smoking marijuana 

A young boy was sitting on Harold Anderson's lap with 
his pants undone. He was stroking the child's penis. The 
name of the child is unknown .... 

A third party occurred on the 21st or 22nd of September, 
1983, at the same Twin Towers apartment. Alisha had turned 
15 on September 18th. Present at this party were Troy Boner, 
Alan Baer, Robert Wadman, Mark Powers, Larry King, 
Larry (Lnuk), Danny King, and Harold Anderson. 

Harold Anderson was "with" Danny King. 

On the above evening, Robert Wadman told Alisha that 
she was pretty and asked her if she was wearing anything 
underneath her clothing. He asked her if she was wearing 
a bra. Sometime around 10:00 to 12:00 p.m., she was sitting 
on his lap. He indicated to Alisha that he knew she wasn't 
a virgin and he then felt her breasts. He told her that she 
had nice breasts. He felt her genitals and unzipped the zipper 
to thejumpsuit she was wearing. She asked him to stop and 
he grabbed her wrist very tightly and twisted her wrist. 

He then removed her clothing and asked her if she knew 
what fellatio was. He said that he would show her what it 
was. He then instructed her to perform oral sex. Robert 
Wadman's pants and underwear were down. He pinched her 
on the breasts. She was kneeling on a cushion on the floor 
and he was stroking her hair and her breasts, while she was 
performing oral sex, and he was also grabbing her head and 
forcing her to perform oral sex on him After this sexual 



70 



"SOMEBODY HAS TO TELL THE STORY" 

activity, she began to cry and went to the bathroom where 
she vomited. 

Wadman then told her that he would buy her a new dress. 
. . . While at the French Cafe, Wadman gave her this dress 
and said that he wanted to show her the wine cellar. . . . She 
removed her clothing and put on the dress. He said that she 
would look better without the dress so she took off the dress 
and he removed her panties and sat her on top of a table and 
spread her legs. He then began touching her and she was crying 
because she was afraid that he would rape her. He masturbated 
and ejaculated on her. When he ejaculated, she physically 
drew back which made Wadman very angry 

She stated that during parties sexual encounters would 
occur between adult males and minor males. Usually present 
at these "parties" were Larry King, Robert Wadman, Gene 
Mahoney, Alan Baer, Peter Citron, Harold Anderson, and 
the superintendent of a school. . . . 

She told me that a photograph was taken of her at a later 
party while she was tied up. It is probable that the photograph 
was taken by Rusty Nelson. She describes Rusty Nelson as 
having blond hair, average build, approximately 27 years 

old, and that he has acne scars on his face Reference 

group sex, photos were taken of the group sex encounters 
by Larry King and the photographer, Rusty Nelson. She 
mentions that her hands were handcuffed and her feet were 
tied up 

She said that Alan Baer "cruises" the Old Market area 
for young boys, then takes them back to his office where 
he has them run naked on a treadmill while he watches 
them. This has been corroborated by Troy Boner who did 
perform this activity for Alan Baer. . . . 

She states that she witnessed a young boy sitting on Bob 
Wadman's lap at a party and that he had his hands between 
the boy's legs 

She also discussed the activities of Harold Anderson. She 
said that he likes young boys and that his "regular" boy 
is named Jeremy (Last name unknown) and that he was 
approximately 14 years old when she witnessed them to- 
gether. She said that Harold Anderson gives money to boys 
and that she has seen young boys performing oral sex on 



71 



THE FRANKLIN COVER UP 



him. She stated that she has witnessed Danny King perform- 
ing oral sex on him. . . . 

I asked her to elaborate on the superintendent she men- 
tioned as attending the "parties." She said that he lives 
approximately 40 miles from Omaha, is gay, older, balding, 
has bad teeth, and stands approximately 6'. She stated that 
this individual had sex with Troy Boner at the Twin Towers 
apartment and that he gave money to Troy for this 

Corroboration: You will later see that another witness, 
Danny King, identifies Deward Finch, former superintendent 
of the Fort Calhoun High School as an individual who he 
had sex with on many occasions. He also fits the description 
as related by Alisha. 

Other information from Alisha was that Troy Boner and 
Danny King were taken to Council Bluffs by adult males 
for sexual purposes. 

Corroboration: Troy Boner and Danny King related these 
events in detail in their respective videotaped statements. 

Alisha also describes a forced sexual encounter which 
occurred at the French Cafe in August of 1985. Present were 
five boys from Boys Town, Tom McKinney [sic], and Judge 
Theodore Carlson, among others. Larry (Lnuk) told her that 
"someone is waiting downstairs and you'd better be good." 
She performed oral sex on Judge Carlson, and the encounter 
lasted approximately 20 minutes 

It should be mentioned at this time that the individual 
identified as Larry (Lnuk) is known as Larry King's "hench- 
man". I have been unable to determine his last name. It 
wasn't usual for the individuals in this group to divulge their 
last names, and it was also common to use aliases 

Please note that Alisha became very upset when discuss- 
ing her sexual activities with Bob Wadman, and with other 
individuals. The video was stopped several times so that she 
could compose herself. 

She said that Wadman had told her that Larry King "owes 
him a lot" and that had done a lot for Larry King." . . . 

She said that she was told that [Omaha Mayor] PJ. 
Morgan supplies a lot of drugs 

Alisha took numerous plane trips at the direction of Larry 
King for sexual purposes. These trips include trips to Los 



72 



"SOMEBODY HAS TO TELL THE STORY" 

Angeles, Kansas City, Pasadena, CA. On these flights were 
other minors. Information regarding these flights is as fol- 
lows: . . . 

Private Flights: 

The first private flight that Alisha was on occurred in 

March of 1984 The plane landed at a small airport in 

California Upon their arrival, Danny and Alisha were 

taken to an Embassy Suites type motel, and two businessmen 
came into their room. One man had sex with Danny, and 
one man had sex with Alisha. They received no money. 
Please note that she said that Larry King had ordered her 
to take this trip. 

The man that Alisha had sex with she describes as 
tremely weird." He hurt her, forced her to have anal sex, 
slapped her and threw her around. He took out a knife and 
threatened her if she didn't perform oral sex on him, and 
threatened to cut off her nipples. She was afraid and crying. 

She stated that when the men finally left, that they were 
both very upset. She described Danny as being very upset 
and angry. Their ordeal with these two men lasted approxi- 
mately six hours. Also, they were both afraid to take a 
shower for fear that the men would come back 

Corroboration: Troy indicates in his video statement that 
Alisha, after this ordeal, was extremely upset and "smelled" 
and was a "mess." ... 

When Alisha was asked who participated and who was 
aware of the transportation of kids across state lines for 
sexual purposes, she said that Larry King and Alan Baer 
were aware of this. It is probable that other adults were also 
aware of this. She stated that Bob Kerry [sic] knew about 
these activities and that Larry (Lnuk) had told her this. Larry 
(Lnuk) also indicated that Bob Kerry knew about the closing 
of the Franklin Credit Union before it fell. 

Other issues discussed regarding Bob Kerry consisted of 
Alisha's statements that she had a friend who works for 
Dixon and Dixon law firm who is responsible for maintaining 
the keys to the file room. Her name is Jackie Compton, and 
she has told Alisha that there are various documents with Bob 
Kerry's signature on them that relate to the Commonwealth 
ordeal. This is explained in detail in the first video taped 
statement. ... 



73 



THE FRANKLIN COVER-UP 



Alisha discusses the friendship between Judge Carlson 
and Tom McKinney, Assistant Douglas County Attorney. 
. . . She stated that McKinney and Carlson are also involved 
in drug activity 

She also knows Peggy* West, the daughter of Gary West 
who is a good friend of Larry King's. She said that Peggy 
may have also been exploited and/or is aware of these activi- 
ties. She is also acquainted with Gary West and indicated 
that he is a bartender at the Max Bar in Omaha. 

When questioned about satanic cult activity, she said that 
Troy Boner and Danny King were involved in this activity, 
and that at one time Danny King was extremely "anti- 
God." ... 

She also mentioned a house on Leavenworth where there 
is, or was, a pentagram drawn on the kitchen floor. She also 

saw satanic pictures on the walls ofthis house In addition 

she stated that she saw Bob Wadman coming out of this 
house on one occasion. 

Corroboration: Loretta Smith mentioned that a person 
actively involved in cult activity was a male identified as 
Kings Horses. She [Alisha] said that Larry (Lnuk) who wast 
is Larry King's "henchman" is known as Kings Horses. 

She also indicated that she knows an individual identified 
as James Teddy Broom. She describes him as black, with 
greasy hair, a flat nose, slitted eyes, and that he "walks 
funny." Said that he does the "dirty work" for Larry (Lnuk). 

Corroboration: Loretta indicates that Teddy Broom was 
instrumental in satanic cult activity, and threatened her if 
she said anything about what happened at the meetings. 
Loretta Smith also indicated that Teddy Broom raped her 
mother, Jackie Smith*, as a warning to her. . . . 

She knows an individual named Frank Kessler who she 
thought was "very strange" and who always talked about 
the occult, but wanted to get out of it. 

You will also see a transcript of a taped inteview from 
Lisa Sutherland*, who discussed satanic activity and teenage 
prostitution in Omaha. She too mentions Frank Kessler as 
being involved in cult activity. 

She also knew of a social worker identified as Florence 
Davis who may be associated with this group of people. She 
stated that Larry King could "get anybody out of anything" 



74 



"SOMEBODY HAS TO TELL THE STORY" 

by offering them bogus jobs. It is also possible that Florence 
Davis may be involved in "funneling kids" into certain foster 
homes. See a transcribed interview with Millie Boggs* the 
Director for the Omaha Children's Home for further infor- 
mation regarding Florence Davis 

Caradori filed a back-up report for this part of the precis, 
entitled "Taped conversation with Gary A. Caradori and Mil- 
lie Boggs." 

GC: But I'm also interested in when I asked you about what's 
her name, she was living "high on the hog." 

MB: Florence Davis? 

GC: Florence Davis. 

MB: See, I'm not. . . . Let me tell you a little bit about what 
I know about Florence. I mean, Florence just used to be a 
line worker. I mean she was a worker like I am. 

GC: I want you to talk about that because her name has come 
up. Just because a person's name has come up doesn't make 
you guilty either. 

MB: No. 

GC: And maybe it came up because she had the position at 
the time. And doggone it, I'm going to get her pulled on 
the carpet and have her explain herself from back then. 

MB: You'll never get her back here. 

GC: A subpoena might bring her back. 

MB: Well maybe. I hear she's in San Francisco. I don't know. 
All of a sudden one day she was just there and the next day 
she's gone. And nobody can understand how Florence gave 
up this good job being a supervisor which would, I think 
had always been her goal. . . . 

In late June of 1983 I attended a meeting at the state with 
Florence Davis, the McArthur children's worker, and Lloyd 
Linquist, the permanency planner. Basically, the purpose of 
this meeting was to tell me that the state would not change 
their minds and that they felt they were in a better position 
to judge what the McArthur children needed, and that they 
were going to proceed with adoptive plans of placing the 
children with the Webb family in Fort Calhoun. 



75 



THE FRANKLIN COVER UP 



A few days later I went with Florence Davis to the Webb 
home, as Florence thought I would feel better about the 
placement if I had the opportunity to meet the Webbs. Quite 
to the contrary, after meeting with Mr. and Mrs. Webb, I 
was more concerned than ever as I did not feel that this was 
a proper home for these three children 

Something that I think is extremely suspicious is that 
about the time that the King mess was surfacing, Florence 
Davis suddenly left the state, almost overnight, and suppos- 
edly is living in California. A short time later, Lloyd Linquist 
went on sick leave and was gone for many months. And 
then about the time he was to return, he also resigned. While 
he was on leave I understand that he took a trip to Tahiti. 
I think personally that Lloyd Linquist and Florence Davis 
know a lot about the situation regarding the abuse of these 
children and they should be found and questioned 

One time when Florence was working for the state, I be- 
lieve before she became a supervisor, I noticed that she de- 
clared bankruptcy while she was living in her new condo and 
had her new car. However, after that whenever I would see 
Florence it seemed like she was dressed extremely well and 
did not appear to have any monetary worries, although I am 
not a friend of Florence's and I did nothing with her socially. 

Lloyd Linquist also was impeccably dressed, although 
someone told me that he had only rented a room at the Grace 
Bible Institute and actually didn't even have an apartment. 
... I thought it was interesting that Lloyd could take trips 
to Europe which I know that he did in the years that he was 
a permanency planner, and other exotic vacations on the 
salary that he was paid by NDSS. 

Caradori's summary of the testimony from Alisha resumed: 

During the second video taped statement, [Alisha] again 
discussed the pornography aspect of this case. She said that 
Rusty Nelson develops his own photographs and that he 
would more than likely have the negatives of the group and 
individual pornographic photos, possibly to blackmail Larry 
King at a later date. She reiterated that Rusty Nelson and 
Larry King would "direct" these photographic sessions. She 
said that she would cry and try to get out of participating 



76 



•SOMEBODY HAS TO TELL THE STORY" 



in these sessions, but she would be "slapped around" if she 
didn't participate 

She also states that Alfie Allen had been given a Mercedes 
Benz by Larry King, and that Alfie was very upset when 
the money stopped coming in because of the closing of the 
Franklin Credit Union 

She again discussed the parentage of her child. She said 
that she is 99.9 percent sure that her child is Bob Wadman's, 
and that conception occurred in August of 1984. She had sex- 
ual intercourse with him on August 8th, August 10th, August 
17th, and August 22nd. All of these sexual encounters occur- 
red at the Starlight Motel, with the exception of August 10th 
which occurred at the Twin Towers apartment. . . . 

Caradori recommended 62 individuals and documents to be 
subpoenaed on the basis of Alisha Owen's testimony. He finish- 
ed the precis with a list of alleged perpetrators, named by 
her: 

1. Larry King 

2. Bob Wadman 

3. Harold Anderson 

4. Alan Baer 

5. Deward Finch 

6. Peter Citron 

7. Judge Theodore Carlson 



Owen provided Caradori the name of Troy Boner as a victim- 
witness who could testify on the same events. After beginning 
a search for Boner, Caradori received a telephone call from 
him at 4:40 a.m. on November 25, 1989. From 4:30 p.m. later 
that same day, until 10:22 p.m., Troy Boner told his story. 



Troy Boner 

. . . Troy then stated that he met Larry King in July of 1984. 
He stated that Alan Baer had talked to Larry King about 



77 



THE FRANKLIN COVER-UP 



him, so Larry King approached him in July of 1984 in The 
Max Bar and grabbed Troy's crotch 

Since it was apparent that Troy had met Alan Baer before 
meeting Larry King, I asked him when he first met Alan 
Baer. He said that he first met him in August of 1983 through 
a friend of his named Tim Prescott* . He said that Tim picked 
him up in Alan Baer's car and told him how he could make 
some money. Tim took Troy to Alan Baer's residence in 
the Twin Towers which Troy stated was apartment #201 

He said that he knew he was there so Alan Baer could 
get acquainted with him, and so he could make some money. 
He thought that he would let Alan Baer perform oral sex 
on him for him because Tim Prescott had told him what the 
"arrangements" would be 

He said that he walked back to Alan Baer's apartment 
later that afternoon at Alan Baer's request. Alan met him at 
the door in a yellow Ralph Lauren bathrobe. Alan Baer 
asked him to get undressed. (Troy stated that he thought he 
was going to get $50.00.) He started undressing in the hall- 
way and Alan Baer asked him to go into the bedroom. Alan 
Baer then got undressed and a sexual encounter ensued, 
including mutual masturbation and oral sex. After this sexual 
encounter, they took a shower together and he received 
$400.00 in fifty-dollar bills. Alan Baer told him to call him 
that next Tuesday. 

Troy met with Alan Baer again five days later, after Troy 
had called him from his residence in Council Bluffs to make 
the arrangements. 

Corroboration: Get the telephone records for his residence 
in Council Bluffs at this time 

On February 5, 1984, Alan Baer took Troy and another 
young kid to Des Moines, Iowa. The other boy's name was 
Shawn (Lnuk) and he was approximately 12 to 13 years old. 
They drove to Des Moines in a tan Mercedes, which Troy 
thought might possibly be rented. They stayed at the Savoy 
Hotel in downtown Des Moines. Troy and Shawn stayed in 
the room at the hotel while Alan Baer attended some business 
meetings. The three of them had several sexual encounters 
while in the hotel. At one point, Troy left the hotel and upon 
returning found Alan Baer asleep holding Shawn. 

Troy's mother had filed a missing persons report while 



78 



"SOMEBODY HAS TO TELL THE STORY" 

he was in Des Moines. He then called the mother of his 
girlfriend and had her pick him up in Des Moines. He left 
without Alan Baer's knowledge. 

Corroboration: Check for a tan Mercedes possibly leased! 
rented to Alan at this time. Check to see if Loni Boner did 
file a missing persons report at that time. Who was Troy's 
girlfriend at that time? Check her and her mother to see if 
they did pick up Troy in Des Moines. Check the hotel records 
at the Savoy Hotel for that time period 

In July of 1984 Troy was approached by Larry King at 
the Max Bar. Larry knew what Troy looked like from the 
pictures he had received from Alan Baer. Larry King grabbed 
his crotch while at the bar. Please note that he was a minor 
at this time 

Larry King then had Troy move into the Travel Lodge 
Inn. . . . During this three weeks, Larry would stop by at 
various times, usually in the afternoon, for sex with him. 
They would perform oral sex on each other, and Larry King 
performed anal sex on Troy. Larry King also wanted Troy 
to urinate on him in the bathtub, which he did 

In May of 1985 he [Troy] talked with Danny King about 
how Danny could make some money. Danny initially ob- 
jected and said he did not want to get involved, but he later 
changed his mind. Troy had also told Alan Baer about Danny 
King. Troy then took Danny to Alan's apartment at the Twin 
Towers during which time Alan Baer asked Danny some 
questions about himself. Alan Baer then told him [Troy] to 
leave. He waited for approximately three hours before Danny 
came out of the apartment, and Danny showed him $300 
that he said Alan Baer had given him. Danny said no sexual 
activity went on, but Troy stated that he later found out that 
Alan had anal sex with Danny. 

In June or July of 1985, he went to a party where a 15- 
year old boy was in the center of the room with his pants 
down. An adult male was inserting beads into the young 
boy's rectum. Other adult men were seated around the young 
boy masturbating. Troy was ordered at this party to play 
with the young boy's genitals. 

He stated that he thought the adult male who was inserting 
the beads into the young boy's rectum was a police officer. 
An individual named Mark* (Last name unknown) had told 



79 



THE FRANKLIN COVER UP 



him that this adult male was a police officer. The alleged 
police officer masturbated on the young boy in the center 
of the room 

Troy also stated that an individual he identified as PJ. 
Morgan was there, also masturbating while the young boy 
was being exploited in the middle of the floor. . . . 

He stated that he met Alisha Owens in February or March 
of 1984. He stated that Alisha did lose her virginity with 
him, and that he did introduce her to Bob Wadman at a 
party held in an office in the Woodmen Tower . 

When asked for further information about Bob Wadman, 
he stated that he likes to have sex with young kids and that 
in addition to Alisha Owens, there was another young girl 
he was involved with identified as having the last name of 
Hovel*, who was a runaway from Chicago. He stated that 
the last time he saw this girl was in May of 1986. 

He stated that although he did not take any trips with 
Wadman, that Wadman did take trips with Larry King . 

He said that [the] reason he went on this flight was to 
have sex with an individual named Ron Gilbert. He stated 
that Ron Gilbert is a movie producer for a television series. 
He stated that he received no money for having sex with 
Ron Gilbert, and that he and Larry King also had sex while 
on this trip . 

The next trip occurred in a private plane to California. 
Present were Troy, Danny King, Alisha Owens, two smaller 

kids, and Larry King he said that he knew Danny and 

Alisha were going to be used for sexual purposes, even 
though neither one of these individuals wanted to go. The 
two smaller unidentified kids got dropped off by Larry King 
and Troy at two different locations. He stated that he believes 
that these two kids were "sold." ... 

He stated that Ron Gilbert, the television producer from 
California, is also involved in making pornographic movies. 
He described Ron Gilbert as an older, Jewish man. 

Troy also discusses Robert Andreson [sic] having a col- 
lection of pornographic photographs. He feels that this indi- 
vidual works for Union Pacific Railroad and that he lives 
in Lavista, NE 

He also stated that the following individuals supplied 
illegal drugs: 



80 



"SOMEBODY HAS TO TELL THE STORY" 

Larry King 

Alan Baer 

David (Lnuk) 

John Points 

Bob Wadman 

Mark* (Lnuk) 

Troy also stated that Bob Wadman brought two grams 
of cocaine to the party in North Omaha 

Troy stated that Claire (Lnuk), Alan Baer's secretary, 
would set up "appointments" with kids for Alan Baer. He 
described Claire as an older woman, petite, with gray hair 
that she wore in a bun. Troy stated that Claire knew who 
he was. 

He stated that Larry King and Bob Wadman and a couple 
of other men took a trip somewhere and with them were 
two young boys. He stated that the two young boys did not 
return from the trip 

When asked what other kids were involved in these activi- 
ties, he stated the following: 

Rusty (Lnuk) 

Danny King 

Alisha Owens 

(Fnuk) Hovel* 

[three others] 

On December 4, 1989 and December 5, 1989, I took 
Troy to the Omaha, Nebraska, and Council Bluffs, Iowa, 
areas in order to identify the various locations he made 
statements about in his videotaped statement. See Exhibit 
PH-I for the photographs and his identification of these 
locations. See T-18 for the daily reports covering these 
two days. 

On December 22, 1989, I video taped Troy again for 
corrections that he wanted to make reference certain details 
in his first video taped statement. . . . 

It is recommended that the following individuals and! 
or documents be subpoenaed reference the statements and 
allegations made by Troy BONER. [60 names and references 
are listed.] 

Perpetrators: 

Alan Baer 

Larry King 



81 



THE FRANKLIN COVER-UP 



P.J. Morgan 
Bob Wadman 
Ron Gilbert 
Henry (Lnuk) 
Bob Andresen 
[two others] 



On December 3, Caradori taped a third victim-witness. 



Danny King 

This writer telephoned Danny King at the Residence Inn 
and, along with staff member Karen J. Ormiston, proceeded 
to this facility . . . 

At approximately 9:32 a.m. the interview began with 
James Daniel King in room 422 at the Residence Inn. Please 
note that approximately five hours of video was completed. 
It was quite apparent to this writer that it was very difficult 
for Danny to divulge the events of his past. . . . 

It is apparent that there are some discrepancies between 
the statement of Alisha Owens and that of Danny King, 
however this writer feels that Danny was heavily involved 
with drugs during this time period and wasn't quite sure as 
to certain details. As a matter of fact, Danny did not know 
what month follows December. . . . 

At this time, Danny indicated that he was relieved and 
wanted to "go forward." It is this writer's opinion that Danny 
is finally coming to grips with reality. He also indicated that 
this is the first time he was ever told anyone about the events 
that have happened to him. 

From Danny King's videotape: 

Danny said that he first met Alan Baer toward the end 
of 1983. This would have made Danny approximately 13 
to 14 years old. He met Alan Baer through Troy Boner. . . . 

Danny met with A approximately two weeks later. A and 
Danny drank schnapps and both participated in oral sex. 
Danny received 50.00 from A. The time was after school 



82 



"SOMEBODY HAS TO TELL THE STORY" 

at approximately 5 p.m. He would have been 13 or 14. This 
occurred at A's residence 

Danny then saw A for approximately seven months, every 
week. The same events would occur as stated above . 

In April of ]984 Danny met Larry King at A's residence. 
Cocaine was used by A and Danny. LK and Danny then 
went into the bedroom. Danny was lying on the bed and 
LK had anal sex with Danny. It hurt Danny and Danny 
made him stop. Danny then gave LK oral sex but spit LK's 
ejaculation. LK then hit Danny with a shoe on the side of 
the head because he did not swallow it. Danny received no 
money for this occurrence 

At this time Danny started seeing A again and A intro- 
duced Danny to "shooting up" cocaine. A gave him a shot 
in the arm and Danny got sick. A shot up also. Both partici- 
pated in oral sex and Danny received $50.00 

Danny mentioned an individual named Larry, Jr. who is 
LK's righthand man 

When shown photographs, Danny identified Deward 
Finch as being "Chuck" who Danny had engaged in sex 
with quite a few times. 

Perpetrators: 

Larry King 

Alan Baer 

Deward Finch 

Bob Andreson [sic] 

Gary (Lnuk) 



Atapress conference on December 18,1989, Senator Schmit 
announced that he had obtained videotaped testimony from 
three victim- witnesses in the Franklin case. It had been viewed 
by himself and the other members of the Franklin committee, 
Senators Bernice Labedz, Dan Lynch, Jerome Warner and Den- 
nis Baack. "Members of our committee are dismayed," Schmit 
wrote in a letter to Attorney General Spire, released at the 
press conference, "by the fact that no state or federal investiga- 
tive bodies interviewed any of these new witnesses we have, 
even though they were discovered by our investigative efforts 



83 



THE FRANKLIN COVER-UP 



after a fairly short time and with a very small budget. ... It 
is the opinion of all committee members that the activities 
described and the personalities involved scream out for action, 
whether statute of limitations problems are involved or not. 
... As a result of the new evidence and new investigations, 
we have all become very, very concerned." 

Schmit expressed his personal inclination to release the tapes 
in toto, for the sake of "the safety of our witnesses" and a 
speedy investigation. He abided by the committee consensus, 
however, to hold them back. 

By December 1989, local, state and federal law enforcement 
had received copies of the videotapes of Alisha Owen, Troy 
Boner, and Danny King. Some officials, notably Douglas 
County Sheriff Dick Roth, said they believed the victim-wit- 
nesses. After watching five hours of the tapes, the Associated 
Press reported in February 1990, Roth "said he found the wit- 
nesses' statements to be credible." But there was no apparent 
move toward prosecutions. 



84 



CHAPTER 9 



THE DECAMP MEMO 



On January 18, 1990, 1 released a document that soon became 
infamous as "the DeCamp memo." For the first time, the names 
of prominent alleged perpetrators were public. 

A lot has been written about that memo, much of it full of 
untruths and distortions. What follows is the true story of the 
DeCamp memo and the events leading up to it. 

In the spring of 1989, after the first child abuse stories 
surfaced, I recommended to Senator Loran Schmit that he 
go directly to the FBI in Omaha to discuss the very serious 
allegations being made against Police Chief Robert Wadman 
by various individuals. This was before anybody even knew 
that Alisha Owen or other victim-witnesses existed and, of 
course, before Alisha Owen's allegations against Robert Wad- 
man were made. 

This legal advice of mine to Senator Schmit was in response 
to his question as to how to handle things, when law enforce- 
ment officials themselves were being accused of impropriety. 

"Go to the highest authority you can, above the authority 
who is being accused," I told him. 

Senator Schmit insisted I go with him to this meeting, as 
his personal attorney. I agreed to go, but on condition that he 
first meet one-on-one with the regional head of the FBI, Nick 
O'Hara, without me present. 

He did meet with O'Hara for about hour. Then I was 
called into the room. 1 1 was only at urne, through discussion, 
that I learned that the individual in question was former Omaha 
Police Chief Robert Wadman. 

In brutal language and with the most somber demeanor 
possible, Mr. O'Hara made it clear that probably his closest 



85 



THE FRANKLIN COVER-UP 

friend in the world was Police Chief Robert Wadman, and 
that anyone who would dare to accuse Robert Wadman of 
impropriety had better realize that in accusing Wadman, they 
were effectively taking on Nick O'Hara and the FBI. 

I realized instantly, that my advice to Senator Schmit may 
have been faulty. How could I have known in advance, that 
the head of the FBI and the former chief were so intimate in 
their business and personal relationships? 

There was tension in the air. I made a point of saying 
that I also was sure that all these accusations-whatever they 
were-had to be nonsense. I pointed out that my experience 
as a public official, a senator for sixteen years, made me appreci- 
ate the fact that it is easy to accuse a public official and darned 
difficult for one to defend himself, since the accusations are 
immediately put on the front page of the paper and broadcast 
as the lead story on the evening TV news. 

But, as if to make a point that both I and Senator Schmit 
had better understand how serious it was for anyone to come 
to the FBI and raise questions about Robert Wadman, O'Hara 
had us sit down and provide him information about ourselves, as 
ifwe were the ones being accused and investigated, proceeding 
exactly as one might expect the FBI to do with someone the 
FBI was investigating. 

"What's your date of birth? Where were you born? What 
is your exact name? Do you have any aliases?" O'Hara quizzed 
us. 

When we left the FBI offices, I said to Senator Schmit, 
"Wow, did J make a mistake. Anybody who dares to investigate 
this is going to get themselves buried by the FBI, if they start 
making any accusations against Wadman or anybody associated 
with him." 

I had no idea how prophetic those words were. 



It was only after Caradori's first tapes had been turned over 
to law enforcement agencies, that leaks of what was on them 
began to reach the public and became the subject of widespread 



86 



THE DECAMP MEMO 



discussion. Articles began to appear in the Omaha World- 
Herald, aimed to discredit the witnesses and intimidate any 
other potential child victim-witnesses from testifying or coming 
forward with information. 

As the stories proliferated, Gary Caradori expressed to Sena- 
tor Schmit his concern for the safety of the victim-witnesses 
who had allowed themselves to be taped. Schmit sought my 
legal advice again. 

"These kids need protection or they are going to end up 
dead, or become afraid to continue to tell the truth," the senator 
said. "The committee has to do something to guarantee their 
protection. " 

Gary Caradori was even more vehement on the need for 
protection. "Unless they get into a protected environment, 
where Alan Baer and Larry King and Robert Wadman are not 
able to get to them and scare them, I can tell you the kids will 
fold. They will do whatever those guys order them to do. They 
will fold, or they will end up dead," Caradori hammered at 
Senator Schmit. "You have to do something to protect them." 

My legal advice to Senator Schmit and my direct warning 
to Gary Caradori at that time, in December 1989 and January 
1990, was the most painful information I have ever had to 
provide someone. 

"You cannot and should not do anything to use committee 
funds or committee personnel to provide protection for these 
kids," I told Schmit. "Otherwise, you and the committee may 
be accused of impropriety and tampering with witnesses, and 
who knows what else. Painful as it is for me to tell you this, 
you have to find some other legal channel to provide protection 
for the kids. Whether that channel is the courts or a judge or 
whoever, it is something that either the lawyer for the kids 
should be doing, or some institution of government vested with 
the power and responsibility to do those things should be doing. 
But you, Senator Schmit, should not personally get involved 
in any way, shape or form in providing money or assistance 
or protection for these kids, nor should the committee, in 
my opinion." 

Senator Schmit shared his concerns with other members of 



87 



THE FRANKLIN COVER-UP 



the legislature, who were hearing the rumors and who had their 
own resources for finding out information. Key among them 
was Senator Jerry Chizek of Omaha, chairman of the Legisla- 
ture's Judiciary Committee. He was very tight with Douglas 
County Sheriff Dick Roth. 

In early January 1990, as stories of what was involved in 
the Franklin case spread through the streets of Omaha, Senator 
Chizek took it upon himself to set up a very secret, private 
meeting among Senator Schmit, Sheriff Roth, a representative 
of the Douglas County District Court, Judge Corrigan, and 
himself. I was asked by Senator Chizek and Senator Schmit 
to attend the meeting. I was glad to come, for the purpose of 
providing legal guidance to Senator Schmit, so that he did not 
engage in trying to solve the problem of protection for the 
witnesses in an illegal, if well-intentioned, manner. 

The meeting took place in an auto body repair shop some- 
where in west Omaha, on what I am sure was the coldest day 
of the year. 

For most of the afternoon, discussion centered around the 
essence of the rumors that were circulating about the contents 
of the Caradori tapes. Attention was focused on the necessity 
of protecting the victim-witnesses who had provided testimony. 

Sheriff Roth had viewed the tapes. I presume others in the 
room also had, including Senator Schmit. I personally had not 
viewed the tapes and, believe it or not, have not viewed them 
to this day. 

From the conversation on that cold January day, there was 
no doubt at all, that Sheriff Roth and others in the room believed 
in the validity and accuracy of the allegations made on the 
tapes. 

As the talks progessed, Sheriff Roth used a phrase that had 
special meaning to me. "I will tell you one thing," he said, 
"Nick O'Hara of the FBI and Robert Wadman are closer than 
nineteen is to twenty. Everybody in law enforcement knows 
that. I know it especially well. Closer than nineteen is to twenty. 
That makes it almost impossible to get anything done or to 
arrange any witness protection through the feds. I will try to 
help in any way possible, but I am not sure anything can or 



88 



THE DECAMP MEMO 



will be done. These people involved are just too powerful. 
They carry enough weight in this community to do what they 
want and get away with it." 

Sheriff Roth did stand up for the victims of Franklin-related 
child abuse, on several occasions. 1 know that he subsequently 
came under intense pressure, including from the World-Herald, 
to repudiate his belief that the allegations of the child victim- 
witnesses were true. 

The net result of the secret meeting with Sheriff Roth and 
Judge Corrigan of the Douglas County District Court was noth- 
ing. The plan was for Judge Corrigan to explain the situation, 
including the fact that fellow district court judges were the 
subject of some of the accusations, to the other dozen district 
court judges. Then a plan might be worked out, for witness 
protection under the auspices of the court. 

Unfortunately, that did not transpire. What Judge Corrigan 
did or did not do, only he knows. 



About the time of the secret meeting with Judge Corrigan 
and Sheriff Roth, my office received a long-distance phone 
call from a girl who identified herself as Loretta Smith. 1 
returned her call. 

"I'm one of the Franklin victim-witnesses," she explained. 
"I'm the one they wrote a lot about in the Omaha World- 
Herald. A friend of mine told me that maybe you would help 
me." 

Having read the stories about Loretta, who was not identified 
by name in the World-Herald, lknew basically the story she was 
telling, as to her abuse and the individuals who had supposedly 
abused her. 

"I know who you are, Loretta, and if 1 can help you, 1 will," 
1 said. "And yes, 1 have read about you and your story and, 
surprising as it might sound to you, 1 do believe you." 

We discussed ways 1 might help her. 

A couple of weeks after that phone call, reporter Kathy 
Rutledge of the Lincoln Journal telephoned me at night at 



89 



THE FRANKLIN COVER-UP 



home. She said she understood I had been in touch with Loretta 
Smith, and she wanted to know all about the matter. It was 
clear from the beginning of the conversation, by the tone of 
her voice and her accusatory questions, that Kathy was intent 
on doing a hatchet job on me. 

I begged Kathy Rutledge not to distort facts. She repeatedly 
tried to suggest that I had improperly contacted Loretta Smith. 
Furthermore, she kept implying that I had told Loretta that I 
had secret information on Franklin, which I would be trying 
to use improperly. 

I corrected Rutledge again and again. I pointed out to her 
that if I had done the things she was saying or implying that 
I did, such conduct would be a violation of legal codes of ethics 
and would subject me to penalties, including even revocation of 
my license to practice law. I urged that she not even write a 
story about this, for the protection of the young lady involved. 
If she insisted on writing a story, I said, she should at least 
tell the truth and not distort facts. 

A few days later, a lawyer working in my office, John Goc, 
walked into the office carrying the Lincoln Journal and talking 
loudly: "What are you trying to do, DeCamp, get yourself disbar- 
red? What are you going around talking to this reporter for? 
When the Bar Association sees this, you can bet you'll be in 
trouble. I hope you have a good explanation. You're going to 
kill your lobbying business with this kind of story." That is ap- 
proximately what John Goc said to me on January 18, 1990. 

I ran down to get a copy of the newspaper, knowing already 
what Kathy Rutledge must have done. Determined to get herself 
a headline story and lots of attention, she had to distort the 
truth. Just as I feared, every negative and distorted impression 
was conveyed by her story. Six days later, I would be notified 
by the Bar Association that I was under investigation, as a 
result of the Rutledge story. 

Even before that happened, I was confronted by Omaha 
World-Herald reporter Bob Dorr on the telephone, demanding 
that I answer questions about Franklin, such as what I knew, 
where I got my information, how I got the name of this Franklin 
witness, what secret information I had, and why I was conceal- 



90 



THE DECAMP MEMO 



ing things. His drift was the same as Kathy Rutledge's ques- 
tions. 

I determined that I could no longer keep silent. I would 
answer the questions of Dorr in detail in writing, so that there 
would be no misunderstanding or distortion possible. Or, if 
there was distortion nonetheless, I would have a record of what 
I had actually told him. 

My answer to Bob Dorr' s questions was the DeCamp memo. 

I also prepared a documented reply to the Nebraska Bar 
Association inquiry, to prove that the conduct related by Kathy 
Rutledge in her article had not occurred. I was able to submit 
affidavits from two employees in my office, who swore that it 
was Loretta Smith who contacted me, and not vice versa. I 
also obtained an affidavit from a friend of Loretta, who knew 
me and my wife from when we had helped her, on request 
from her minister, several years earlier, and who was the person 
who advised Loretta to call me. Within hours after presentation 
to the Bar Association of this documentation, the bar investiga- 
tion was terminated. I was cleared of any impropriety or wrong- 
doing. 

The Lincoln Journal ran a second story on the matter, after 
the DeCamp memo was issued, in which Rutledge attempted 
to correct the falsehoods and deceptions in the first story. In 
any case, I filed a slander and defamation lawsuit against the 
Journal for that first story, which lawsuit is still in the courts. 



I charged in the memo, that in the Franklin case, "institutions 
of government have failed and thus credibility of government 
itself is at stake in this matter and in a very real sense, first 
the [legislative J committee and then the Legislature, are the 
court of last resort. " (Emphasis in original.) 

I had not seen the videotapes of the victim-witnesses and I 
said so. but I wrote: 

First, as a citizen who strongly pushed for the Franklin 
investigation and in fact offered suggested language for the 



91 



THE FRANKLIN COVER-UP 



Senate Resolution which triggered the investigation, I find 
what is occurring by both the Press and Institutions of Gov- 
ernment nothing short of criminal. The Press quietly and 
carefully covers up, either thru ignorance or artifice, while 
the various institutions of Government repeat the old Com- 
monwealth/State Security game of "let the statute of limita- 
tions run" on those that should and could be immediately 
prosecuted and investigate and study and "ask for more 
information." 

Why? 

Because of the personalities involved. 

The World Herald and Lincoln Journal want to know 
where I get information on Franklin. Get serious. A reporter 
has to be deaf, dumb, blind and corrupt not to know the 
names of the personalities involved and the scope of the 
allegations. Stop on any street corner in Omaha; go into any 
coffee shop; have a drink in any bar in Omaha, or if you 
are lazy, walk around the Capitol Rotunda in Lincoln and 
simply listen to the discussions. Here is what you will learn: 

1. The allegations are that the most powerful and rich 
public personalities of the state are central figures in the in- 
vestigation. 

2. That these include former Omaha World Herald Editor 
Harold Andersen; Larry King of the dead Franklin Credit 
Union; Former Omaha Police Chief Robert Wadman; Media 
Personality Peter Citron; Ak-Sar-Ben Financier and bluest 
of the bluebloods, Alan Baer, for starters. 

3. That the allegations are that these individuals were 
some of the centerpieces in a co-ordinated program of Child 
Abuse, Drug Abuse, and abuse of their various public posi- 
tions of trust and honor. 

4. That prosecutors who should be prosecuting are afraid 
to prosecute for one reason or another and that the public 
itself is rapidly losing faith in its fundamental institutions 
of government as a result of this perceived coverup, whether 
real or imagined. . . . 

What do I personally believe. I damned well believe 
the allegations. 

Now, having said these things and reported these allega- 
tions, am I afraid of being sued by these powerful personali- 
ties. Absolutely not. Remember that rule you newspaper folk 



92 



THE DECAMP MEMO 



live and die by and crucify others by. I f you have forgotten, 
let me repeat it for you: truth is a defense. And, since these 
are all public figures, we also know that absent any malice, 
and I have none, truth is definitely a defense. . . . 

No, I do not fear a lawsuit. I fear, just like any alleged 
child victims in this bizarre tragedy, that the rich and the 
powerful will use their positions of power and control of 
institutions of government to shut up those who would speak 
out and bring things to a head. 



The DeCamp memo lit a firestorm of controversy in Omaha 
and statewide. On radio, TV, and in the press, it was dealt with 
daily for several weeks. 

The furor touched off by the circulation of the memo is 
conveyed in a March 17, 1990 Kansas City Star article, head- 
lined "Former legislator's angry memo turns sober Nebraska 
on its ear": 

Two months ago, DeCamp sat behind his [word processing] 
machine and pounded out the infamous "DeCamp Memo." 
The piece of invective became the subject of discussion 
from Omaha's silk-stocking salons to the cowboy bars in 
the Sand Hills. 

He named five prominent Omaha men as "central figures" 
in a legislative committee's yearlong review of allegations 
of sexual abuse linked to the 1988 collapse of the Franklin 
Community Federal Credit Union 

DeCamp's memo found its way to dozens of copy ma- 
chines and quickly littered the state, spawning a swirl of 
gossip. In an attempt to put the rumors to rest and find the 
truth, the U.S. attorney called a federal grand jury last 
month. 

And next week a Douglas County grand jury in Omaha 
will begin hearing the allegations, including one that King 
flew teenagers to Kansas City in 1985 to perform sex with 
men in a rented room at the Westin Crown Center Hotel. 

Hardly modest, DeCamp takes credit for the convening 
of the grand juries. "If it had not been for that memo, 



93 



THE FRANKLIN COYER-UP 



there would not even be a grand jury investigation today," 

DeCamp contends 

DeCamp had the audacity to name, among others, Harold 
Andersen, former publisher of the Omaha World-Herald. 
DeCamp left the implication that Andersen, an icon of jour- 
nalism who lunches with President Bush, had a fetish for 
children. Said one politician, "It was like insulting God." 

Rumors started reaching me, that I was going to be sued by 
various people. 

Finally, a close friend of mine, who is a prominent reporter 
in Nebraska and whom I agreed not to name in this book, came 
to me privately to say that an agreement had been reached 
among the various individuals I had named in the memo, and 
others, for Peter Citron to be the one to sue me. The purpose 
would be to destroy me in full view of the public, and to 
repudiate the DeCamp memo. 

Truth put a crimp in that plan. Not long after the message 
was delivered to me, Peter Citron was charged with sex crimes 
involving male minors in the Omaha area. It seems that some 
parents, who knew their children were hanging around Peter 
Citron, were shocked to see him named in the DeCamp memo. 
They responded by asking their children, whether or not there 
was any truth to the allegations, with respect to Citron. One 
after another, the boys began to pour out the truth to their 
parents. 

The demands by parents for immediate action left the police 
and prosecutors no choice. They had to file charges against 
Peter Citron, although I rather suspect they did not want to. 

Citron ultimately pleaded guilty. Today he is in prison, 
sentenced as a mentally disordered sex offender. 



Needless to say, the World-Herald devoted many column- 
inches to condemning the DeCamp memo as irresponsible. 

I cannot neglect to comment on the World-Herald's overall 
role in the Franklin scandal. 

Nebraska has only one state-wide news source. It is the 



94 



THE DECAMP MEMO 



Omaha World-Herald. Our small population, vast expanses, 
and the cost of maintaining a daily newspaper in this day and 
age, all guarantee that the World-Herald is the news source 
for this state. With that awesome power, one would think would 
come a corresponding measure of responsibility, to make sure 
Nebraskans get all sides of an issue. That they really get the 
news. 

But the World-Herald's long-standing pattern of behavior 
is just the opposite. If it has an editorial attitude on a story, 
its news coverage and every other aspect of the newspaper are 
mustered to accentuate the preferred side of the issue and 
suppress opposing views. 

In the case of Franklin, the paper went to new lengths. The 
integrity and credibility of the newspaper went on the chopping 
block, for the sake of suppressing the truth about Franklin and, 
to a high degree, the Commonwealth and State Security banking 
stories-Nebraska's three biggest scandals of the last fifty 
years. 

Why all this effort? Because, tragically, the people who 
control the World-Herald appear to have a strong vested interest 
in suppressing the truth. Whether it is Peter Citron, past pub- 
lisher Harold Andersen, or underlings who have their positions 
only because of Andersen, their linkage to Franklin dictates 
that they use the best tool available, the World-Herald, to tell 
the public what they want them to believe. 

Because of its virtual monopoly as a news source, something 
repeated often enough by the World-Herald may attain the 
status of truth in the minds of those who read it. In the case 
of Franklin, the paper has repeated a simple theme, shaped by 
its top personnel-that the Franklin sex scandal, pedophilia 
and drug abuse stories were trumped up. 

I can present certain facts, never publicly revealed before 
now, that exemplify the program of deception carried on by 
the World-Herald throughout the Franklin scandal, continuing 
to the present. 

In coverage of the DeCamp memo, and in other Franklin 
coverage, the impression given by the World-Herald was that 
the legislative committee to investigate Franklin, headed by 



95 



THE FRANKLIN COVER-UP 



Senator Schmit, was functioning in an irresponsible manner, 
allowing leaks to the press and to others. In editorials and 
on the news pages, the World-Herald repeatedly condemned 
Senator Schmit for supposedly leaking information. Then they 
attacked me, for supposedly obtaining information from Sena- 
tor Schmit and leaking it. 

The truth was the opposite. I was providing information to 
the committee, as committee records will bear out. 

Probably the best example of this would be the detailed 
breakdowns of Franklin Credit Union financial transactions, 
which the committee received from me, months in advance of 
their own investigation. 

How did I get such data? Believe it or not, I got them from 
the chief counsel of the National Credit Union Administration 
(NCUA), Robert Fenner. 

In an unsolicited phone call from him, Fenner gave me 
details about Franklin's secret accounts. In retrospect, I believe 
he wanted-through me-to throw cold water on the questions 
that were heating up in Omaha, about the role of Franklin 
monies in the Iran-Contra money-laundering schemes. At the 
time, I asked Fenner if he wanted me to share his information 
with Senator Schmit, which he did. 

I immediately drafted a detailed memo of my conversation 
with Fenner. I provided the information to Senator Schmit, 
for the legislative committee. I gave Fenner' s phone number 
to Schmit. 

Thus, from the outset, I was sending information to the 
Senate Franklin committee, and not the other way around. 



96 



THE DECAMP MEMO 



eO«»P !„l. oUce 



Lincoln Journal article of January 18. 
1990. which appeared despite John De- 
Camp's urging journalist Kathleen Rut- 
ledge to "tell the truth and not distort 
facts. " 







ASSISTANT COONMl 
Aliioo L Una* 



Mr. Juhn k, oecaep 
Attorney at Uw 
100 Executive Bldg. 
521 South nth Street 
Lincoln, Nebraska 68508 

oear- Hr. uecaeo: 



The supreae Court Rules of Discipline 
Nebraska, 1969, provide that 1 alii to notify 
that he is under investigation or that he is the subject 
corap 1 e i nb and furnish him a copy thereot. Accordingly, I 
enclosing a copy of a newspaper article published on Janu 
1990 in the Lincolj -^oui vjaJ . 



stale 



cle, tha 



ed, be 
you may ha 

t to Rule 9 



e attewpted 



olici 



legal liusirii 



Pursuant to Rule 3 (E) of the Supreme court Rules of 
Discipline, you are required to send to Re an appropriate written 
response within the next rifteen (15) working days. If you fail 
to so respond, the Rules provide that this failure alone shall be 
qcounds for discipline. 

After reviewing your response, I cen dismiss the comp J a int 
if it does not appear that your conduct was in violation of the 
Code of Professional Responsibility. If your conduct does appeer- 
to constitute a violat.ion o( the Code of Professional 
Responsibility, a further investiqat.ion will be instituted, 
may be eppropr iate under the clecueat.ances. 

Sincerely yours. 



Alison 
Assista 
for Dis 



Larson 
it Counsel 
;ipl ine 



Six days later, this letter from the Nebraska State Bar Association notified 
DeCamp he was under investigation for improperly contacting a victim- 
witness. 



STATE PF NEBRASKA 
COUNT* QF LANCASTER 



is B^^-- I 1 
Nebraska, and I work at R 
my roQja«ates al m y currern 
worked at fiichard Vounq Me 
Care Person) for a young ' 

several years ago, wfrert 

personal pr-cbLeras , Rever 
ranged for me to slay 



Lin 



:il 



3009 Cass Street, Omaha, 
chard Voung Helllorial Hospital. One of 

residence is who previously 

ial Hospital : the 1 „ . 

i^t-Ui^ „™ *2— pep (Pc unary 

STATE OF NEBRASKA ) 

COUMTr OF kAKCASTER } 



of myself and particular 

John uecaep has provided 
requested it in regards 
Ml, without charge, I m 
fee cose for me on a pet- 
Early in .jenucry, 1990, 
q i v i nq any notice to Joh 
with John DeCamp and his 
John's Leqel assistance 
course of the conversati 
employ mitt at Richard To 
f^HMI , and another emp 1 
Irom their jobs in cne i i 
hospital policy that pat 
lllonths a fter patients ar 
In ta^e H^ 
for her safety and had it 
with her former PCP, ~J0 
the lime. 

I adv ised John DeCamp of 
surrounding ^^^^Pfc - 

had failed and cost peop 
lo fear for her sa f e ty ; 
queat.icned about FranKH 
stories about the terrib 
result of franklin and I 
by an attorney. 



) On January 8, J 990, she answered a HUBber of telephone 

eaUs lo Ihe firm and received one in particular, for John DeC~~P 
f rop ii telephone number * When in!or_ed 

that Hr. Dec «p*p was not available, Ms. left a Ilessage and 

requested that Hr. DeCamp return her call. Your affiant then 

conveyed the message and telephone number to Mr. Decamp's 
secretary, Jan Jewell. 



< ) Othei 
uch dale. 



illLl 



Ihe J a 



1990, call pr. 



£ 



Ts¥fev 



would have to initii 
willing to represen 
contact him if she 



Sworn and subscribed befo 



: this , J " day at d«mw/. 1990. 
/ 

■ (.-.< r -t 



He told me t.nat he would 

to her ebout, things such 

representation if she called him and asked 



that help. John 



Affidavits from Det. amp's and a friend of the victim-witness 

proved that the Journal was distorting facts. 



u- 



The Bar Association 
cleared DeCamp.' 



— January . 



To: Bob Doit, Omaha World Herald, and the public: 
Dear World Herald Reporter: 

Attached please l"i n d copy of stOrv 
to give you sonic background in for ma 

On 8 January i99Q my office, Phone 477-3974, took a phone call from a young lady 

who identified herself as ). The phone call was taken 

by Cindy HorrLssey, a secretary in my office, who relayed the information to me 

to call this young lady at Phone Number Later in the day, when I had 

tune, 1 called this number aud said to the female who answered, "Hellu, my name 
i s John De Camp. I have a message to call L 

The young lady identified herself as a Franklin victim and told me that a friend 

of hers I^H ^H' wn0 '■'"■' recently sought my legal assistance in her own 

personal matters had recommended she. the Franklin Victim, call me if she was 
needing an att.orney. 

I advised her I was quite familiar with the Franklin matter. 

I told her 1 had heard, from _W^^ recently when -^1 came to see me on -^■■^ 
own legal problems, that JMHMV had been treated quite poorly by our institutions 
of government since being released from the hospital. I told her that I understood 

from her friend, ^ that she, , may be needing an attorney but had 

no money. 4!^^ had expressed the fact f.ivK ^M9^jjS might be in danger, a fact 
which I agreed with her on, but Ih'st 4iW^K did not have any place to turn and 
no money to hire ai\y lawyer. 1 to!d ^tf/^, 's>'i<i £SjS^Mr when I returned her 
phone call. that if she was 1101 able to obtain an attorney and if she indeed 
felt she needed one, that I would offer her any assistance my office could 
provide and do it for free if necessary. She asked vhy would I do this for 
free. I said for several reasons: Eirst , I said I believed that the bulk of 
what she and others were saying was essentially true and that the Foster Care 
Review Bear-d which I legislatively sponsored a few years ago also believed her 
story was Lrue and that she might well be needing a lawyer of soma kind if for 
no other reason than for her own protection and to obtain court assistance in 
these efforts. I advised her that, crazy as it might sound to her, my primary 
reason for agreeing to assist her if she wanted was because 1 felt Institutions 
of Government had failed and each citizen has a duly to try to force Institutions 
of Government La work when they are standing there in. a position to do so. 

I pointed out to her some background I had which gave me familiarity with the 
Franklin maLter including the fact that I had personally been a delegate to the 
Republican National Convention in 1984 and 1988 and been a witness at the massive 
spending and luxury at the Lorry King parties in both Dallas and New Orleans and 
as Chairman of the Legislative Banking Committee had observed with a jaundiced 
eye the Franklin operation which no information could be obtained on because it 
was a Federal Institution. 

1 strongly cautioned her to take care of herself and think about what she wanted 
to do, it anything, and offered to be available if she needed anything and vas 
not able to obtain assistance elsewhere. 

I tried La describe for her a C-1983 Federal Court Action under which she could 
Seek protection from the court, assistance from Institutions of Government and 
damages if appropriate. I explained that if successful such an action would 
allow any lawyer who helped her to recover their expenses and appropriate fees. 
I olferad to talk to her further if she wished to come to Lincoln to talk to me. 

I have heard nothing further from the young lady until the 18th of January when 
the Lincoln Journal called me and asked how I hg<j obtained the name of one of 
the secret Franklin witnesses- 

The reasou I prcvide you this information is very simple. I have maintained 
more than a passing inLerest in Franklin and believe, as I have suggested to 
Senator Loran Schm' n occasions, th STITUT10NS OF GOVERNMENT HAVE 



After Rutledge's article appeared. Omaha World-Herald reporter Boh Dorr 
telephoned DeCamp, demanding to know where DeCamp information, 

how he the name of the Franklin and what information 

he had. So that there would he no groundsfor misunderstanding or distortion. 
DeCamp decided to answer in writing. the origin of the DeCamp 

Memo, shown here. 



CHAPTER 10 



PAUL BONACCI 



In May 1990, Caradori discovered a fourth victim-witness, 
Paul Bonacci, whose testimony corroborated and amplified the 
stories told on the earlier videotapes. Caradori's daily notes of 
May 10 record his first contact with Bonacci, at the Douglas 
County jail. 

After discovering Dan Newton* wasn't at this facility, this 
writer then contacted Inmate Paul A. Bonacci. . . . Paul 
Bonacci's name had been given to me by a Mary Barrett, 
and I had his name for quite some time. 

Upon having Mr. Bonacci meet me in an interviewing 
room, Bonacci related to this writer that he knew Troy Boner, 
Danny King, and Alicia [sic] Owen. He further advised that 
he had been a victim of Alan Baer, Peter Citron, and Larry 
King, and had some knowledge of Bob Wadman, Harold 
Anderson, and ajudge who he later on referred to as Carlson. 
During the next few hours, he related some of his knowledge 
reference Peter Citron, Alan Baer, Larry King, and also 
Bob Wadman. 

The subject stated that he had been on at least 1-200 
trips and had been involved in extensive homosexual activity 
as a child and as a young adult, with his homosexual activity 
starting when he was approximately 8-10 years old. The 
subject then stated that between the years of 1982 and 1986 
he had probably been on at least 200-300 trips. The subject 
stated that he made at least 15-20 trips to various parts of 
California, a couple of trips to Washington, D.C, and also 
trips to Des Moines, Minneapolis, Kansas City, Austin, 
Houston, Dallas, St. Louis, Miami, Pasadena, Tampa, Lin- 
coln, and Grand Island. Some of those trips he thought 



100 



PAUL BONACCI 



involved politicians from Washington, D.C., however, he 
didn't know anyone by name because of his young age. 

The subject stated that he was taken to the Omaha Police 
Department sometime in March and was talked to by Omaha 
Police Detective Mike Hoch, during which time Detective 
Hoch was very hard on Bonacci, and after finishing up with 
the police interview, he told Bonacci, that, reference Larry 
King, he was afraid he might prosecute him (Bonacci) as 
there would be no attempt to give him formal immunity. 

When questioned about Alan Baer, he stated that he first 
met him in the "Milk Run," an area near and surrounding 
the Correctional Center. He stated that he was approximately 
12 years old and that this occurred possibly in 1979. He 
stated that Alan Baer would pay him $20 for oral sex. He 
stated that the last time he had sex with Alan Baer was, 
he believed, around November 15, 1989, in Alan Baer's 
apartment in the Twin Towers 

Other information received from Paul indicated that he 
had tried to get away from these people on many occasions, 
and in his attempt to escape them he did attempt suicide. 
He stated that he was very afraid of Larry King's "people." 
In fact, there was a black individual whom he called "Larry 
Little King," who would go around and make threats and 
attempt to scare him and other individuals. Paul Bonacci 
indicated that he was really very scared of being threatened. 

In reference to Bob Wadman, subject stated that he be- 
lieved he met Wadman sometime in late 1985 or early 1986. 
He stated that he had seen Bob Wadman at [at] least two 
parties that were located near the town of Elkhorn, Ne- 
braska 

During the course of the conversation, subject stated that 
Alisha Owen was present at [at] least one of these parties 
that Wadman had attended also. The subject believed the 
girl (Alisha) and Wadman might have been together 

Other information gained during the interview: Bonacci 
stated he knew when Alisha Owen got pregnant because a 
young individual by the name of Chris told him that it was 
probably Bob Wadman who got Alisha pregnant. Further, 
he stated that there was another individual who he had spent 



101 



THE FRANKLIN COVER-UP 

time with in the Twin Towers by the name of Bob Morino, 
Apt. #4H, Twin Towers, Omaha, Nebraska. Also, there was 
another young boy sexually abused by Alan Baer by the 
name Peter Fells*. He stated that this individual might have 
moved to Tennessee, however, he was not sure. 

Paul Bonacci went on to state that he had gone on many 
"scavenger hunts" for Alan Baer. He defined "scavenger 
hunts" as an activity in which he would go out and recruit 
young boys for Alan Baer. . . . 

He stated that Larry King would fly him all over the 
country. On at least one trip to California, Alisha Owen was 
present on the flight. . . . 

He stated that on at least one trip he had seen Troy, 
Danny and Alisha in California. That was sometime in 1985 
or '86.... 

He also stated he made two trips to Washington, D.C. 
with Larry King-just the two of them alone. He stated that 
while in Washington. D.C. he had sex with other people. 
He thought they were part of the Republican Party because 
Larry King was trying to hard to in with the higher 

ups" in the Republican party. He stated that he heard the 
name of one of the individuals with whom he had sex as 
Frank. He thought he might be a senator or governor or 
some state official. . . . 



On May 14, 1990 Caradori took a video statement from 
Bonacci. He wrote in that day's notes: 

Further, when questioned, Mr. Bonacci stated that his last 
contact with Alisha Owen, he thought, was in 1986, and 
with Troy Boner and Danny King in 1987. He stated that 
he had no physical, verbal, or written communication with 
any of those three since that time. 

One of the experiences with Larry King, which Bonacci 
described to Caradori on tape, he later detailed again in his 
written account of abuse, prepared for his lawyer, this writer. 



102 



PAUL BONACCI 



Bonacci has often said, that he wants the full story of his abuse 
to be public. "Somebody has to tell the story," he wrote in the 
introduction to this document, "And it might as well be me." 
Gruesome as it is, Bonacci's report to me harks back to the 
early cries for help, from Loretta Smith: 

I went in January of '84 on every trip. I was paid by men 
King knew for sex. In the summer of '84 sometime I went 
to Dallas Texas and had sex with several men King knew 
in a hotel. 

I flew on YNR Airlines and Kam Airlines normally for 
King. I never had much personally to do with King, only 
went where he told me to go. 

In or on July 26th I went to Sacramento, Ca. King flew 
me out on a private plane from Eppley Airfield [in Omaha] 
to Denver where we picked up Nicholas, a boy who was 
about 12 or 13. Then we flew to Las Vegas to a desert 
strip and drove in to Las Vegas and to some ranch and got 
something. Then flew on to Sacramento. 

We were picked up by a white limo and taken to a hotel. 
I don't remember the name of it. We meaning Nicholas and 
I were driven to a area that had big trees, it took about an 
hour to get there. There was a cage with a boy in it who 
was not wearing anything. Nicholas and I were given these 
tarzan things to put around us and stuff. 

They told me to f — the boy and stuff. At first I said no 
and they held a gun to my balls and said do it or else lose 
them or something like that. I began doing it to the boy and 
stuff. And Nicholas had anal sex and stuff with him. We 
were told to him and stuff and beat on him. I didn't try 
to hurt him. We were told to put our d— s in his mouth and 
stuff and sit on the boys penis and stuff and they filmed it. 
We did this stuff to the boy for about 30 minutes or an hour 
when a man came in and kicked us and stuff in the balls 
and picked us up and threw us. He grabbed the boy and 
started f— ing him and stuff. The man was about 10 inches 
long and the boy screamed and stuff and the man was forcing 
his d — into the boy all the way. The boy was bleeding from 
his rectum and the men tossed him and me and stuff and 
put the boy right next to me and grabbed a gun and blew 
the boys head off. 



103 



THE FRANKLIN COVER-UP 



The boys blood was all over me and I started yelling and 
crying. The men grabbed Nicholas and I and forced us to 
lie down. They put the boy on top of Nicholas who was 
crying and they were putting Nicholas hands on the boys 
ass. They put the boy on top of me and did the same thing. 
They then forced me to f— the dead boy up his ass and 
also Nicholas they put a gun to our heads to make us do it. 
His blood was all over us. They made us kiss the boys lips 
and to eat him out. Then they made me do something I don't 
want to even write so I won't. 

After that the men grabbed Nicholas and drug him off 
screaming they put me up against a tree and put a gun to 
my head but fired into the air. I heard another shot from 
somewhere. I then saw the man who killed the boy drag 
him like a toy. Everything including when the men put the 
boy in a trunk was filmed. They took me with them and we 
went up in a plane. I saw the bag the boy was in. We went 
over a very thick brush area with a clearing in it. Over the 
clearing they dropped the boy. One said the men with the 
hoods would take care of the body for them. 

I didn't see Nicholas until that night at the hotel. He and 
I hugged and held each other for a long while. About two 
hours later the men or Larry King came in and told us to 
go take a shower since we had only been hosed off at some 
guys house. We took a shower together and then were told 
to put on the tarzan things. After we were cleaned up and 
dressed in these things we were told to put on shorts, socks 
and a shirt and shoes and driven to a house where the men 
were at with some others. They had the film and they played 
it. As the men watched they passed Nicholas and I around 
as if we were toys and sexually abused us. 

They made Nicholas and I screw each other and one of 
the men put the dead boy's penis in mine and Nicholas' 
mouth. I didn't want to write this because the man forced 
me to bite the boys' penis and balls off. It was gross and I 
saw the film where it happened and started freaking out 
remembering what they made us do afterwards to the boy. 
They showed us doing everything to the boy. I was there 
for about 5 days attending parties but only recall cutting my 
wrist which is why I stayed two days in a hospital under a 
name I can't recall. Some guy paid for me. 



104 



PAUL BONACCI 



In other testimony, Bonacci said that Larry King was smiling 
and laughing the whole time the film was being shown, and 
that "the men with the hoods" were a Satanic group which 
planned to use the dead boy in some sort of ceremony. He also 
named the director of the snuff film, whom they had picked 
up in Las Vegas, as "Hunter Thompson." 



105 



CHAPTER II 



COVER-UP PHASE II 
THE DOUGLAS 
COUNTY GRAND 
JURY 



On July 23, 1990, twelve days after the sudden death of Gary 
Caradori, the Douglas County grand jury, formed in the wake 
of the DeCamp memo, issued its long-awaited report. A banner 
headline in the World-Herald trumpeted: "Grand Jury Says 
Abuse Stories Were a 'Carefully Crafted Hoax'." 

The conclusions presented in the 42-page "Grand Jury Re- 
port," not to mention the pretentious language in which it 
discounted whole areas of the Franklin case, betray the delibera- 
tions of the jury, rather, as a carefully crafted cover-up. The 
grand jury gave opinions on a variety of matters. 

The Douglas County grand jury cleared Larry King of 
child abuse: 

We found no credible evidence of child sexual abuse, inter- 
state transportation of minors, drug trafficking or participa- 
tion in a pornography ring by King or other Franklin officials 
or employees. To the extent that homosexual relations occur- 
red involving such employees or officials, the evidence we 
were able to uncover showed these exchanges to be voluntary 
acts between persons above the age of consent. 

Yes, Larry King had diverted credit union funds for his 
personal gain, but "it is our opinion that federal authorities are 
better able to pursue matters regarding this misappropriation 
of credit union funds, and we strongly recommend that they 



106 



COVER-UP PHASE II: THE GRAND JURY 

continue to do so." And although "we also found probable 
cause to believe that King, on numerous occasions, used money 
or items of value to 'entice, inveigle, persuade, encourage or 
procure' men in their late teens or early twenties to engage in 
acts of prostitution with him, and, therefore, he committed the 
crime of pandering," the statute of limitations had run out on 
many of these acts, and "our ultimate decision was that to 
charge and try King with a class IV felony under state law 
when he is facing 40 felony counts in federal court [on financial 
charges only] would not be the best use of the resources of 
the Douglas County District Court, and again we have deferred 
to the federal prosecution." 

So careful was this grand jury not to fritter public resources, 
that it did not even subpoena Larry King! 

The grand jury explained away its failure to call King as 
a witness: 

Because King is presently in an institution out of the state 
pursuant to an order from the federal court, and because we 
believed he would rely on his right against self-incrimination 
. . . , we decided it would not be fruitful to attempt to require 
King to appear before us. 

Whenever it did admit that abuse had taken place, the grand 
jury stipulated that none of it had anything to do with the 
Franklin Credit Union. 

The grand jury indicted three people. First came Alan Baer, 
the department store heir, one of the five persons named in the 
DeCamp memo. 

We did have testimony from certain witnesses about sexual 
involvement with Baer. Evidence also showed that these 
witnesses received substantial amounts of money or other 
valuables in exchange for sex. . . . Therefore, we believe 
Baer committed the offense of pandering, and we have 
handed down an indictment against him for that offense. 

However that may be, the grand jury added, "We have 
found no direct connection between Alan Baer and King or 
the Franklin Credit Union, other than limited social and busi- 
ness dealings." 



107 



THE FRANKLIN COVER-UP 



Peter Citron, another of the five I named, appeared before 
the grand jury and was found to have had "inappropriate sexual 
contact with male minors," but again, "no connection has been 

found to link Citron with the Franklin Credit Union " Citron 

had already been indicted and convicted for these contacts in 
a separate court process. 

The other two people indicted were the victim-witnesses, 
Alisha Owen and Paul Bonacci. These young people had suf- 
fered, admitted the grand jury, but that had nothing to do 
with Franklin: "We think that Owen might have been sexually 
abused during her early years, but not by the people and in 
the way she has alleged." As for Bonacci, "according to his 
testimony, he was a child victim of repeated sexual abuse 
by persons not associated with the Franklin investigation." 
Accusing them of lying to the grand jury during May and June 
of 1990, the jury handed down indictments against Owen on 
eight counts of perjury and against Bonacci on three counts. 

Troy Boner and Danny King, the other two main witnesses 
taped by Caradori, recanted in the spring of 1990. The 
County grand jury made no mention of the fact that by retractin 
their testimony to Caradori, the two were saying that they lie 
to the Legislature, whose representative Caradori was. 

The grand jury noted that in a May 1990 interim report, it had 
recommended "that the Washington County Attorney charge 
Jarrett Webb with third degree sexual assault of a minor," namely 
Nelly Patterson Webb. Where Nelly had reported organized 
abuse and prostitution, however, she was not to be believed: 

In early 1986, Nelly began to expand her allegations by 
charging that she had been taken by King on flights to other 
cities such as Chicago and Washington, D.C. where she 
was "put on display" at parties where sex and illegal drug 
activities took place. We interviewed a number of witnesses 
who traveled extensively with King, and a few made what 
must have been embarrassing admissions about engaging in 
sexual contact with Kng on some of these trips. However, 
no witness before the Grand Jury could confirm in any way 
that Nelly Webb or any other children were ever transported 



108 



COVER-UP PHASE II: THE GRAND JURY 

for any illegal purposes and we found no evidence to support 
these claims. 

Addressing other dimensions ofthe Webbs' house of horrors, 
the grand jury offered its opinion that it was "unfortunate that 
so much time elapsed between the first allegations of abuse 
and the time that the last children were removed from the 
home." It then faulted Carol Stitt of the Foster Care Review 
Board for writing to the state attorney general so promptly 
about Loretta Smith's reports, instead of first making more 
inquiries on her own! But Attorney General Spire had "appro- 
priately passed the information on to [Law Enforcement chief] 
William Howland," and any delays past that point must have 
been due to Howland's heavy workload, in the jury's opinion. 

Loretta Smith, who testified before the grand jury, had "suf- 
fered more abuse and neglect than anyone should ever have 
to endure," but "the perpetrators of such abuse may never be 
known." In any event, "the Grand Jury found no evidence to 
substantiate any connection between King, or any Franklin 
personnel, and the alleged illegal activities described by the 

girl." 

The grand jury report contained gratuitous pronouncements 
such as that "children do have the right to expect that if they 
exhibit reasonable behavior, they will not be abused." (Empha- 
sis added.) 

It casually mentioned that, according to the OPD, there were 
"over 500 known pedophiles in the Omaha area." (Since the 
U.S. Department of Justice estimates that a typical pedophile 
molests 77 children before he is caught, and most are never 
caught, a contingent of 500 pedophiles would be abusing thou- 
sands of children every year!) 

One pedophile even 

caused us [grand jury members] to be greatly concerned. 
This individual, Robert W. Andresen, a white male, 6'5", 
325 lbs., has been known to coerce males (including male 
minors) to his residence. Once he has taken a male there, 
he may sexually assault and/or pornographically photograph 



109 



THE FRANKLIN COVER UP 



the young man. Furthermore, we have reviewed documents 
that state Andresen has threatened to physically hann his 
victim(s) and has threatened to search out and kill those 
who report him to the authorities. 

Having painted that bloodcurdling portrait, the grand jury 
dismissed the matter with a wave: "Unfortunately, because the 
victims refused to testify against him, we could not indict." In 
reality, Andresen figured in the taped testimony of Troy Boner 
and Danny King to Gary Caradori, which the grand jury ne- 
glected to say. 

The grand jury charged that the "hoax" was spread by certain 
"rumormongers"; among these, it named two child care work- 
ers, to whom the victims had begun to speak. In the opinion 
of the grand jury, "Perhaps never in the history of Douglas 
County has the discordant multitude played so feverishly upon 
the rumor pipe as in the allegations of sexual misconduct sur- 
rounding Franklin." 

All those who had pursued the allegations, such as Senator 
Schmit and the Franklin committee, Senator Chambers, this 
writer, members of the Concerned Parents, and a free-lance 
journalist named Michael Casey, came under attack from the 
grand jury. But, in a striking variation from normal grand jury 
procedure-to either indict an individual or not to name him 
at all-this jury cleared, by name, all the prominent alleged 
abusers, including Judge Theodore Carlson, Harold Andersen, 
former Game and Parks Commissioner Eugene Mahoney, 
Omaha Mayor P.J. Morgan, and Omaha lawyer Thomas 
McKenney. As for alleged abuser Chief Robert Wadman, the 
jury observed, "We now look upon Owen as the perpetrator 
and Wadman as the victim." 

According to the grand jury, one of the perpetrators did not 
even exist: "Owen repeatedly referred to a bodyguard and 
enforcer of King's nicknamed 'Larry the Kid.' We believe this 
muscular, black male, in his late teens or early twenties, to 
be a fictitious character." The report did not explain, how a 
fabricated personality could have appeared in reports from at 
least four different children over a period of three years. Loretta 
Smith told about a person named King Horse, who was at 



110 



COVER-UP PHASE II: THE GRAND JURY 

parties and rituals she attended in 1985. Alisha Owen testified 
that Larry King's "henchman" was a black youth named "Larry 
(Lnuk)", also known as Kings Horses. Danny King said "Larry, 
Jr." was King's righthand man. And Paul Bonacci reported 
that a black man he called "Larry Little King" would carry out 
threats on Larry King's behalf. 

Finally, the report insisted that there was no cover-up. 

There are citizens who believe that prominent individuals, 
allegedly associated with this case, are automatically guilty 
because of their public stature. They also believe that the 
public stature of these individuals allows automatic protec- 
tion and the power to cover up situations. While we agreed 
that this was a possibility, our investigation found nothing 
to substantiate any of these allegations. There is no evidence 
of a cover up. 

The Douglas County grand jury said it "spent the most time" 
and "the majority of our fact finding and deliberative effort," 
on refuting the videotaped testimony assembled by Gary Cara- 
dori. It concluded, "There is no doubt after reviewing all rele- 
vant evidence, that the story of sexual abuse, drugs, prostitution, 
and judicial bribery presented in the legislative videotapes is 
a carefully crafted hoax, scripted by a person or persons with 
considerable knowledge of the people and institutions of 
Omaha, including personal relationships and shortcomings." 

With Caradori, as Senator Schmit put it, "conveniently no 
longer alive to defend himself," the grand jury insinuated that 
he had staged the tapes for personal profit: 

We have scrutinized Caradori's investigative techniques. In 
too many instances individuals Caradori interviewed were 
"fed" items of information. He led his witnesses and the 
videotapes were stopped and started at suspicious intervals 
with the substance of the witnesses' stories changing. Cara- 
dori stated that he thought it was his job to find the leads 
and it was someone else's responsibility to follow them up. 
We believe to the contrary. We think that Caradori stood 
to gain professionally and personally from the outcome. 
Caradori spent more time supporting the allegations rather 



THE FRANKLIN COVER-UP 

than verifying the same. Caradori worked from a sensational 
base. I f there appeared to be something that would be scan- 
dalous, he was interested in following it through. I f it was 
just a routine matter, he was not willing to invest the neces- 
sary time or effort. 

In October 1990, Karen Ormiston, the employee of Cara- 
dori's investigative firm who was with him at the videotapings, 
passed a polygraph test administered by Chris Gugas, a profes- 
sional polygraph specialist from San Diego who was President 
of the National Polygraph Association. The questions to which 
she answered "no," were: "1. During Gary Caradori's inter- 
views with the Franklin case victims, did he ever threaten 
anyone in obtaining information from them? 2. To the best of 
your knowledge, did Gary coach any of the alleged Franklin 
case victims on what they should say in their interviews? 3. 
Did Gary and you advise any of the four victims at anytime 
to fabricate their stories?" To the question, "Were all the state- 
ments given to you and Gary by the four Franklin case victims 
completely voluntary?" she answered "yes." Gugas concluded, 
"[I]t is the opinion of this examiner that Ms. Ormiston answered 
all of the above relevant questions truthfully," 

One of Caradori's close associates said after his death, "We 
never thought these tapes represented more than a tiny part of 
the overall story. They are important, but the Franklin case has 
been turned into a debate on the tapes." The collaborator was 
talking about the investigation's reach into high political circles 
and into Washington D.C., but the point applies also to the 
use of the tapes themselves. The bad faith of the grand jury's 
dismissal of Caradori's work comes even more into relief, if 
contrasted with the reams of evidence in the investigator's files, 
which the grand jury apparently failed to consider. By no means 
satisfied with the taped statements as they stood, the meticulous 
Caradori listed, at the end of each interview precis, dozens 
of leads for follow-up and cross-checking. A small excerpt 
demonstrates his exhaustive investigative agenda: 

6. Records from what was formerly Brandeis to determine 
the payment of the dress and teddy that Wadman bought 
Alisha. 



112 



COVER-UP PHASE II: THE GRAND JURY 

7. The bartender who was present at the French Cafe 
when Alisha had lunch with Wadman. 

8. The kitchen help who was employed at the French 
Cafe at the time that Alisha and Wadman had lunch there. 

23. Fuel records for the private planes that Alisha took. 
This would indicate where the plane fueled up, especially 
on flights to the west coast. 

24. David Hughes; a pilot named by Alisha as one of 
Larry King's favorite pilots. 

Caradori did not trace through many of these leads, because 
he died. But the grand jury waved them aside. 

The jury's report says that it "heard live testimony from 76 
witnesses" in all. Caradori's notes on the Alisha Owen and 
Troy Boner tapes alone, list over 75 people to be interviewed 
during follow-up, not counting Alisha and Troy. Caradori's 
evidence, the originals of which occupy a whole locked room 
at the statehouse, comprise cross-indexed binders, boxes of 
files, hundreds of hours of audiotapes as well as the videotapes, 
and a list of 291 potential witnesses in all. The grand jury had 
a full set in its possession. 

I do know, who from Caradori' s potential witness lists was 
called before the panel, because I was one of the few people 
who ultimately had access to this information. I am forbidden 
from identifying these people. 

As I have said, I believe that if the entire grand jury testimony 
could be made public, that would be in the public interest. I 
also believe that, if that were done, there would be a follow- 
up grand jury to investigate the original grand jury. 



The Grand Jury Report met with outrage. 

Trish Lanphier, head of the Concerned Parents group, two 
of whose founders were denounced as "rumormongers" by the 
grand jury, blasted the indictment of Alisha Owen and Paul 
Bonacci: "This is a sick grand jury. Turning the victim into 
the perpetrator. This is so classic." 



113 



THE FRANKLIN COVER-UP 



Phone calls against the jury's findings poured into a local 
TV station, as reported in the Omaha Metro Update of July 
30: "The day after the grand jury report hit on Tuesday, July 
24, an 'unscientific' viewer phone-in poll by Omaha television 
station KETV Channel 7 indicated 10-1 viewer dissatisfaction 
with the grand jury report. More than 3,000 responses were 
tallied." 

The jury claimed-without having called me to testify- 
that I had "issued [my] memorandum for personal political 
gain and possible revenge for past actions against [me]." I filed 
a civil suit, charging that the jury's statements "were malicious, 
intentional, negligent and done in . . . violation of [my] clearly 
established constitutional and statutory rights." 

Senator Chambers submitted a "Motion to Expunge" to the 
Douglas County District Court, accompanied by an 83-page 
supporting brief, which documented the jury's gross irregular- 
ities. 

The legislative Franklin committee's official response to the 
jury's report raised a question which the jury had carefully 
left unanswered. "We assume from their choice of words- 
carefully crafted hoax," the Franklin committee said, "that the 
Grand Jury was persuaded that the testimony of the witnesses 
corroborated each other, and included facts and circumstances 
which were readily verifiable and attested to by other witnesses. 
Otherwise, it could not be logically deemed 'carefully crafted.' 
If it was carefully crafted, who crafted it and when?" 

In addition, the committee observed, "Alisha Owen and Paul 
Bonacci are charged with perjury and Troy Boner and Danny 
King are not. As we see it, the victims who stand by their story 
are charged with perjury, while those that have admitted to 
false statements before the Committee [in the videotaped testi- 
mony] are not. That makes little sense to us. Either all of them 
should have been indicted or none of them. The message is 
mixed and appears to favor encouraging the recanting as a way 
to avoid the hazards of criminal prosecution. It also tells persons 
they can lie under oath to Legislative Committees, so long as 
they change their story before they get to court." 



114 



COVER-UP PHASE II: THE GRAND JURY 



The Omaha World-Herald, whose society columnist Citron 
stood convicted of child molestation while its former publisher, 
Andersen, was whitewashed in the grand jury report, leaped 
to the jury's defense. "Grand Jury Did Its Job; The Insults Are 
Intolerable," blared its lead editorial on July 29, 1990. 

Rumors of wrongdoing and coverup in the Franklin case 
were rampant last winter. Based on the conclusions of the 
Douglas County grand jury, it now appears that the rumors 
resulted from the fantasies of liars, hoaxers and opportunists 
who wanted to pay back their perceived political enemies. 

Because of the rumors last winter, however, the faith of 
much of the public in its institutions was shaken. At one 
time, there seemed no way to determine the truth. 

How fortunate Nebraska was to have the grand jury sys- 
tem to help it get to the truth. 

Now, however, the grand jury system itself is under at- 
tack. The grand jurors who constituted the Douglas County 
body are being insulted. Doubts are being cast upon their 
integrity. 

The barrage continued, with an August 2, 1990 World-Her- 
ald editorial, "Schmit Panel Can't Duck Responsibility in 
Hoax": 

Loran Schmit is frantically rewriting history as he urges the 
public to believe that his Franklin committee doesn't deserve 
the criticism it was given by the Douglas County grand jury. 
. . . Senator Schmit, you and other people connected with 
the committee haven't been putting evidence together prop- 
erly since the day committee investigator Gary Caradori 
made the videotapes that became part of the Franklin story . 
. . . Schmit clearly had his mind made up on the credibility 
of many of the stories on the videotapes. By June, still 
sticking by his view that the stories were believable, he 
was insinuating that "money is being spent" to block the 
indictments of prominent people. The more such statements 
were repeated, the more some Nebraskans believed the wild 



115 



THE FRANKLIN COVER UP 



tale of a sex-and-drug ring and cover-up involving Omaha 
individuals and institutions. 



The World-Herald evidently hoped that the "wild tale" about 
prostitution and a cover-up had been laid to rest by the grand 
jury. The more that became known about that panel, however, 
the more obvious it was that the grand jury itself, guided by 
prosecutor Samuel Van Pelt, was adding to the cover-up, and 
had systematically leaked sensitive information, buried crucial 
evidence, and threatened witnesses. 

In my opinion, never was a case of control and abuse of 
institutions of government and cover-up of crime executed 
more perfectly, than in the calling and handling of this 
grand jury. 

A grand jury can be the best or the worst device to uncover 
crime. First, everything in a grand jury is supposed to be secret. 
Second, the prosecutor in charge of the grand jury can do about 
as he pleases, in presenting or screening information. If a 
corrupt or incompetent prosecutor is in charge, the result will 
correspond to his behavior. 

Third, if the grand jury is controlled by corrupt forces, as I 
believe this one was, then they may use the grand jury as a 
means to find out what people know about the matter under 
scrutiny, by calling them as witnesses, without any of that 
information becoming public. Then such information can be 
used to assist in a cover-up. The so-called recantations of Troy 
Boner and Danny King appear to be a case in point. 

Nebraska may have the worst laws in the United States, on 
the use of the grand jury system. They contribute to corruption 
and cover-up, rather than proper investigation and indictment. 
At an October 14-15, 1991 hearing in the 8th Circuit Court 
of Appeals in St. Paul, Minnesota, this fact was exploited by 
the Nebraska Attorney General's Office, which was defending 
Douglas County Prosecutor Van Pelt and the grand jury fore- 
man in the Franklin case, Michael Flanagan, before a three- 
judge panel that was questioning them. The state's argument 



116 



COVER-UP PHASE II: THE GRAND JURY 

was that the poor quality and ambiguity of Nebraska state laws 
on the use of grand juries at the county level should exempt 
the prosecutor and the foreman from responsibility for any 
errors or wrongdoing committed by the grand jury. 

All grandjury testimony remains sealed. The evidence given 
here of the jury's role in the cover-up comes from the public 
domain; it is a fraction of the story. 



Concern that the grand jury was rigged arose even before 
it was chosen, just as soon as retired judge Van Pelt was named 
as special prosecutor for the Franklin case at the county level. 
On March 12, 1990, the Lincoln Journal ran a letter from 43 
neighbors of the late Cairo, Nebraska farmer and political activ- 
ist Arthur Kirk, in which they termed Van Pelt "a hired gun 
for the state." The group charged that Van Pelt had covered 
up the 1984 death of Kirk at the hands of a State Police SWAT 
squad, which they called murder. In that case, they wrote, "Van 
Pelt simply took the statements of the perpetrators, put them 
in his report and exonerated them of any wrongdoing. He did 
exactly what he was paid and hired to do." 

Gross irregularities in Van Pelt's investigation of Kirk's 
death were noted by Senator Ernie Chambers and others at the 
time. The police, for instance, claimed that Kirk fired first. I f 
he had, their claim to have fired in self-defense might have 
held water; yet no ballistics tests were done to see if Kirk had 
fired his weapon at all! Kirk's wife charged that she had been 
used by the state police to lure Kirk out of his house, so he 
could be gunned down. "I came to realize that they had used 
me against my own husband. I had been used as a decoy," she 
was quoted in Lindsey Williams' 1987 book, Where's the 
Food? Despite glaring contradictions in the SWAT team's 
story, Van Pelt found that the police had acted in self-defense. 

The World-Herald retaliated against the Cairo citizens' let- 
ter, with an all-out defense of Van Pelt. The March 17, 1990 
lead editorial, "Van Pelt's Report on Kirk Followed the Evi- 
dence," lamented, "The sad fact of the matter is that some 



117 



THE FRANKLIN COVER-UP 



people cling to wild, sensational rumors and conspiracy theories 
even in the absence of any rational basis." 



Van Pelt's behavior during the Franklin grand jury was no 
rumor, but a matter of record. Three people who testified before 
the grand jury-Paul Bonacci, Alisha Owen, and a young 
woman called "Jane Doe"-subsequently charged that Van 
Pelt intimidated them and attempted to force them to change 
their testimony. 

Paul Bonacci testified before the Legislature's Franklin com- 
mittee on October 16, 1990, about his grand jury experience. 

BONACCI: And the other thing is they kept saying when I 
was in front of the-that-some-that jury or whatever, 
they kept telling me to-that if I stuck to my story they 
were going to make me be in trouble for it. 

SENATOR SCHMIT: Who said that? 

BONACCI: It was some guy with a- it wasn't in front of 
everybody, it was when I was getting ready to be taken back 
upstairs before lunch. They stuck me in this room. He was 
sitting in this back room behind this desk. He was one of 
the guys that kept asking me questions. 

BEVERLY MEAD (Bonacci's doctor): Well, could you identify 
this particular man who in-describe him or- 

BONACCI: Yeah. He was-had a mustache and I don't know 
if he had glasses or not. ... He was the guy mainly in 
charge 

MR. DECAMP (Bonacci's attorney): What did he say to you? 

BONACCI: He kind of told me if I just-he said-he kind 
of said, if you stick to the same story that you have been 
telling, you will be in a lot of trouble. 

The guy with the mustache was Sam Van Pelt. 

On June 11, 1990, Alisha Owen testified to the Franklin 
committee about what happened when she went before Van 
Pelt's grand jury. 



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COVER-UP PHASE II: THE GRAND JURY 

LEGISLATIVE COUNSEL: First of all, do you have any com- 
ment at all about the grand jury and you can-that you would 
like to tell us without violating your oath to the grand jury? 

AUSHA OWEN: It was the hardest three days of my life 
almost. 

COUNSEL: Well, now wait a minute. You've been sexually 
abused, you've been put into a narcotics situation, you have 
been in a mental hospital, you have attempted suicide, and 
you are saying that your appearance before the grand jury 
was-was more difficult than that, is that correct? 

OWEN: It was more exhausting, yes. I would go home and 
be exhausted. Exhausted. 

COUNSEL: I am going to ask a leading question. Were you 
humiliated, denigrated, degraded, put down? 

OWEN: Yes I met with them on a Monday and that was 

just a very short meeting. And then I met with them on a 
Tuesday, Wednesday and Thursday. That Wednesday I was 
humiliated, 1 was put totally on the defense. Totally put on 
the defense. 

COUNSEL: By whom? 

OWEN: By I call him the jerk at the end of the table. I believe 
his name is Dougherty .... I have not seen prosecutors do 
that in a courtroom the way I was-I was done. I was angry, 
I was upset. I did not deserve that. 

COUNSEL: Your voice is cracking and you are tearing up a 
little. I am going to stop and ask [Owen's attorney] Mr. 

Rosenthal a question Henry, did you feel that you were 

given an adequate opportunity to protect your client during 
the grand jury proceedings? 

ROSENTHAL: Well, I was to the extent that I was allowed 
to. You see, in my opinion they just never asked her any 

questions at all And 1 think at one time, without getting 

into it, they asked her do you want to say anything? She 
says, I'm sorry you never got to the point in three days. It 
was always go around the circle and it was always accusatory 
more than trying to get the facts out and let the chips fall 
where they may. They never gave her an opportunity to go 
into them, you see. 



119 



THE FRANKLIN COVER UP 



Although the grand jury was to indict Owen for saying she 
was sexually abused by Omaha Police Chief Robert Wadman 
in 1983 and 1984, she said they asked her virtually nothing 
about those years, about the abuse, or about her detailed descrip- 
tion of Wadman' s physiognomy. 

OWEN: I-you know, as I said before, they never talked 
to me about 1983 and 1984. They don't even know what 
happened. They-they send me into this grand jury, they 
are calling me a perjurer and they have never even asked me 
what happened. And when-it's kind of hard for me because 
I want people to know I'm telling the truth, and sometimes 
some of the things that you have to tell them about what 
happened or about the perpetrators is difficult. And it would 
be, I think, a gross injustice if that evidence was suppressed. 

The fact that I know about the bunion or the knot on his 
little toe and he has hair on his toes, you know, I can tell 
you exactly how the hair patches on his feet are, it would 
be a gross injustice if that was suppressed in the grand 
jury. I think that would-that would be absolutely a crime. 
Because in the United States today when it comes to those 
kinds of cases, a lot of times the only way that a victim can 
actually prove that they were abused is by identifying key 
marks on that person's body that no one else would know. 

A way to call me a liar and a way to say she's not telling 
the truth would be to suppress that, would be not to watch- 
I made you a tape describing Rob's body. For the grand 
jury, I consider that a key piece of evidence. For that to be 
suppressed I think is a crime. I think that that is willful, 
knowledgeable suppression of evidence. And to have that 
done by a prosecutor, I think that's a crime and that's a 
deliberate cover-up. 

Jane Doe recorded her anger with the grand jury in a taped 
interview with Senator Ernie Chambers, reported on in the 
Nebraska Observer of August 31, 1990: 

She was left with the overwhelming impression that the 
Grand Jury had wanted only that part of her testimony that 
might be useful to discredit Alisha Owen. Later, she was to 
receive phone calls from a male saying she talked too much. 



120 



COVER-UP PHASE II: THE GRAND JURY 

Since she had moved several times since her partying days, 
and except for phone calls right after being investigated by 
the FBI, had not had any such phone calls, she believed 
that someone connected with the Grand Jury was giving 
out information. 

Jane Doe charged that the grand jury was simply a set-up: 

the fact is also, about half way through my testimony, 
in front of the Grand Jury, it was, it got to a point where I 
didn't even trust them. Because of the fact that they did not 
want to know about Alisha or any of that type of stuff." . . . 
According to Jane Doe, Van Pelt told her how to testify 
and why, revealing information about the Grand Jury pro- 
ceedings that others had been charged to keep secret. . . . 
Van Pelt was said to make some references to Jane Doe's 
past, including some illegal activities that were blocked out 
of the transcript, that could have been interpreted by her as 
a threat to her. She said in the interview, were some 

things that I had done in my past that I was afraid he was 

going to charge me with Basically he was using me as, 

like a dummy witness because he had figured out that I didn't 
have or know about any of the information that the Grand 
Jury was dealing with.... So it just seemed to me like 
he was going to use me to discredit Alisha, " [Emphasis 
in original.] 



Bonnie Cosentino, a grand jury witness pilloried as one 
of the "rumormongers," also contacted Senator Chambers to 
register a complaint. A co-founder of the Concerned Parents 
group, Cosentino told Chambers she was repeatedly harrassed 
by Van Pelt's assistant Terry Dougherty outside the jury room. 
The jury's sole interest, it seemed to her, was to tie her to 
Michael Casey, a journalist whom the grand jury was to build 
up as an orchestrator of the "carefully crafted hoax." 

Cosentino wrote in her open letter to Chambers, printed in 
the Omaha Metro Update: 



121 



THE FRANKLIN COVER UP 



Numerous questions asked by Mr. Van Pelt and Mr. Dou- 
gherty, seemed to be accusatory and began with phrases 
like, "Did you tell Carol Stitt ..." (Foster Care Review 
Board) and "Did you tell Jerry Lowe . . . (former Franklin 
investigator). I found myself on trial for reporting leads to 
the proper authorities. 

I was questioned relentlessly about Michael Casey, who 
seemed to be the focus ofMr. Van Pelt's prosecution. I had 
only met Mr. Casey on two occasions, neither of which were 
interviews. Mr. VanPelt and Mr. Dougherty seemed to try 
over and over again to form some relationship between 
myself and Mr. Casey which simply did not exist. 

Senator Schmit recalled his own appearance before the grand 
jury, during a Franklin committee hearing on June 21, 1990: 

And it's also sort of interesting, of course, I appeared before 
the grand jury. I had about 25 minutes for a statement the 
first time, and they had about that many questions. Mr. Van 
Pelt said they didn't have any further need for my appearance 
up there. And I thought that was sort of strange in view of 
the fact that we spent a year and a half at this, we have 
spent hundreds and hundreds and hundreds of hours, and 
[the Franklin committee] could answer all their questions. 
And I might, without revealing anything that was asked, 
might add that most of the questions that were asked of me, 
I think [Franklin committee counsel] Mr. Berry is here, had 
little or nothing to do with the scope of the investigation. 

And the second time around, when I appeared at my 
request, it was more of the same. And it's a rather disappoint- 
ing situation when you realize that if you are hunting for 
something and you do not look where you know the evidence 
is, you're not going to find it. 

In my civil suit, I charged that Van Pelt and Dougherty had 
even participated in writing the grand jury's final report, a 
practice forbidden by Nebraska law. Jury foreman Michael 
Flanagan admitted their involvement, as the World-Herald re- 
ported on August 21, 1990: 

Flanagan emphasized that the grand jurors participated 
equally and actively in the writing of the report, dividing 



122 



COVER-UP PHASE II: THE GRAND JURY 

the writing into small groups and then meeting again and 
again as a whole to "polish and polish" the text. 

He said the special prosecutor, Samuel Van Pelt, and his 
assistant, Terry Dougherty, did not have a disproportionate 
amount of influence on the writing. 

"He (Van Pelt) was with us and he was part of it," 
Flanagan said. "I'd say he was one-eighteenth of the writing. 
Everybody had equal chance and equal opportunity. It was 
a completely joint effort." 

The grand jury explained that its failure to subpoena Larry 
King was due to the probability that King would have invoked 
his Fifth Amendment right not to incriminate himself. In other 
cases, it was fine with Van Pelt to call witnesses who would 
take the fifth, as he indicated to Jane Doe in the exchange 
reported by the Nebraska Observer: 

On the return trip home, Mr. Van Pelt told Jane Doe about 
the "easy day" coming up the next day. When she asked 
why, he disclosed to her that the witness would "plead the 
Fifth." She said, told me that he was a homosexual and 

that he had sex with little boys. And that they would indict 
him on that, so the fact is that he had to plead the Fifth so 
he would not get indicted." Van Pelt said it would be an 
easy day "because he wouldn't have to do anything," except 
"just sit there and listen to those guys plead the Fifth through- 
out the questions." ... 

That exchange, in addition to consisting of inappropriate 
disclosure by Mr. Van Pelt, is sharp contrast to the Jury's 
refusal to subpoena Larry King, "because ... he would rely 
on his right against self-incrimination," and therefore, "it 
would not be fruitful to attempt to require King to appear 
before (the Grand Jury)." [Emphasis in original.] 



Van treatment of Jane Doe caused such a public outcry, 

that Douglas County prosecutor Ronald Staskiewicz felt com- 
pelled to conduct an investigation. He appointed Douglas 
County Assistant Attorney Robert Sigler. Sigler was very famil- 



123 



THE FRANKLIN COVER-UP 



iar with the Franklin case; he was the prosecuting attorney 
when Alisha Owen was sentenced to five years in prison for 
passing $700 in bad checks. He had handled the child molesta- 
tion trial of World-Herald society columnist Peter Citron. After 
Citron's conviction, Sigler maintained that the Citron case had 
never been linked with the Franklin investigation "in the begin- 
ning, middle, or end. That's not what this case is about." He 
told the World-Herald. "It had nothing to do with Franklin, 
the evidence uncovered didn't show any link. That's a big 
misconception." 

Neither was Sigler disqualified from responsibility to probe 
Van Pelt's performance, by the fact that two witnesses to the 
Legislature's Franklin committee witnesses had placed him in 
the Franklin case! 

On June 10, 1990, Karen Ormiston interviewed one Alice 
Good*, who had information on pornography and prostitution. 
Ormiston recorded, "The subject feels that a Douglas County 
prosecuting attorney identified as Robert Seigler [sic], nick- 
named 'Smiley,' is involved with the Franklin case." 

Paul Bonacci was more specific, in testimony given to the 
Franklin committee on June 12, 1990. 

BONACCI: With Larry King I've traveled a lot of times to 
Kansas City, and that was usually by car. But we used to 
go up to Sioux City, Iowa and we used to take a-there 
was a chartered plane. It was called KAM Air or something. 
And they used to fly us up to Sioux City and we'd stay at 
a hotel that was right on the river. And he had a boat and 
stuff we used to go on all the time. And he -we used to go 
up there for having sex and stuff. . . . 

SENATOR LYNCH: Were some of the people you met there 
from the Omaha area, do you remember that? 

BONACCI: Yes. 

LYNCH: Do you remember some of their names at all? 

BONACCI: Joe Caniglia. Guy named Robert Siegler [sic]. 
Alan Baer was there. 

Before he joined the Douglas County prosecutor's office, 
Sigler had worked for an Omaha law firm, where he handled 



124 



COVER-UP PHASE II: THE GRAND JURY 

the legal affairs of Charlie Rogers, a former lover of Larry 
King who died an apparent suicide in 1989. In the days before 
his death, Rogers told friends that he was very afraid of what 
King would do to him, and that if anything happened to him, 
to contact Robert Sigler. The Douglas County grand jury said 
it "spent a considerable amount of time investigating all aspects 
of Rogers' death," but concluded it had nothing to do with 
Larry King. Sigler's friend and associate in the law firm, Gerald 
Moran, later also joined the Douglas County attorney's office. 
In 1991, he ran the prosecution of Alisha Owen for perjury. 

Sigler promptly reported back to Staskiewicz, that Van Pelt 
had done nothing wrong. 



From the outset, Paul Bonacci presented a huge obstacle for 
the Douglas County grand jury. Since Bonacci refused to recant 
what he had testified to Caradori, Van Pelt's jury was compelled 
to indict him for perjury, in order to maintain that the story of 
Franklin-connected abuse was a carefully crafted hoax. 

It was difficult to see how Bonacci could have participated 
with Owen in the fabrication of such a hoax. Caradori did not 
even meet him until May 10, 1990, and took his videotaped 
statement for the Franklin committee on May 14-five days 
after Owen finished testifying before the grand jury. Bonacci's 
recollections corroborated Alisha's on many points, although 
he told Caradori that he thought the last time he had spoken 
with her was in 1986. 

Since his testimony supported Owen's, the grand jury had 
to call Bonacci a liar: 

Bonacci was perhaps the most pathetic witness to appear 
during the entire proceedings. ... He has been diagnosed 
as having multiple personalities, and his psychiatrist doubts 
that he can tell the truth. His many inconsistencies and 
contradictions render his testimony unbelievable and neces- 
sitate his indictment for perjury. 

This tortured formula contained not one, but two contradic- 
tions. Obviously, a person who was medically incapable of 



125 



THE FRANKLIN COVER-UP 



telling the truth could not also be guilty of perjury, or deliberate 
lying under oath. The second error, however, was to cite the 
alleged opinion of "Bonacci's psychiatrist," who did not appear 
as a witness before the grand jury. It was a stretch even to 
apply this label to the doctor in question, Dr. Beverly Mead, 
since he examined Bonacci on behalf of the Omaha Police 
Department. But where Dr. Mead did testify, before the Frank- 
lin committee, he said he believed Bonacci to be telling the 
truth! 

Dr. Judianne Densen-Gerber, New York-area psychiatrist, 
lawyer, child abuse expert and member of the International 
Society of Multiple Personality and Dissociative States, has 
described the ailment Bonacci suffers from, Multiple Personal- 
ity Disorder (MPD). It is not a psychosis, she said, but a 
neurosis, that results from a defense mechanism in the mind of 
a child seeking to protect himself from "unimaginable atrocity." 
Virtually all MPD victims were severely abused starting before 
they were six years old, with tortures such as being hung upside 
down and having hot objects stuck inside them, or being forced 
to participate in the murder, mutilation and cannibalism of 
other children. A child subjected to such terrible emotional and 
physical pain has no possibity of escape from this "emotional 
Auschwitz," so his mind, in self-defense, invents another iden- 
tity at the moment of abuse and suffering. Through this mecha- 
nism, the child victim can imagine he is someone else, looking 
at the pain and betrayal from the outside, as if it were not 
actually happening to him. As the victim grows older, these 
different personalities survive in the victim's mind, each having 
its own age, name, memories and characteristics. 

Multiple Personality Disorder is familiar to many people from 
Flora Rheta Schreiber's book Sybil, about the first MPD victim 
who ever reintegrated her personality through psychoanalysis. 
"Sybil," tortured since infancy by her mother, first sought a psy- 
chiatrist's help as a young woman in Omaha, Nebraska. 

Invited to Omaha by the Legislature's Franklin committee, 
Dr. Densen-Gerber testified on December 29, 1990 about her 
examination of Paul Bonacci. She was questioned by committee 
counsel Robert Creager. 



126 



COVER-UP PHASE II: THE GRAND JURY 

CREAGER: Doctor, I believe the grand jury actually went so 
far as to pin their conclusion on a "fact" that according to 
testimony Mr. Bonacci was not capable of telling the truth. 
Do you have a comment on that? 

DENSEN-GERBER: I think it would be very difficult for Mr. 
Bonacci to lie. . . . Being a multiple personality there is no 

need to lie, you switch [personalities] First of all, Mr. 

Bonacci's story is an average story for someone in Mr. 
Bonacci's circumstances. There is nothing that Bonacci told 
me that I haven't heard from other patients or individuals. 
He has no elaborations and he often says I don't know. He 
does not fabricate or he does not try to provide answers 
which most people do because they want to please. He 
doesn't even give you the impression that he wants to please. 

Police-hired psychiatrist Dr. Beverly Mead concurred, when 
he answered questions from senators and Bonacci's attorney, 
this writer, at an October 1990 hearing before the Franklin 
committee. 

DECAMP: What do you believe now, Doctor, relative to his 
discussions here that we've heard and the ones you and I 
have listened to? 

MEAD: I personally feel that these details that he's related 
to us were experiences that he really experienced 

SENATOR SCHMIT: I have several questions of Dr. Mead. 
Doctor, we heard the witness in various personalities men- 
tion some specific names of persons who were with him at 
various times, Larry King, Robert Wadman. ... In your 
professional experience, is there-how do you-I guess my 
question is do you feel those descriptions are accurate? 

MEAD: I would like to see them confirmed from other 
sources, of course. But it's-it's my present impression that 
Paul is -or [personality] Alexandrew is reporting things 
honestly as he remembers them. 

SCHMIT: Is there any way that he could have imagined this 
and dreamed it up and then told it to us here today? Could 
that have been done? 

MEAD: It would be a most phenomenal trick to do that. I 
don't think it would be possible. I think he's talking about 



127 



THE FRANKLIN COVER UP 



things that he actually remembers In our effort to remem- 
ber something, sometimes we may say, well, I think so-and- 
so, and as we think about it we come to believe it. So there 
might be a few details that are not precisely as happened. 
But I think basically the story as he tells it is what he is 
honestly reporting. 

SCHMIT: For example, the story about his trip to the South- 
fork ranch [with Larry King, during the Republican national 
convention, to be sexually abused], do you believe that 
story? 

MEAD: Yes. 

Finally, the credibility of Paul Bonacci is bolstered by his 
own action in April of 1986, two years before there was a 
Franklin case, when he reported to the Omaha Police Depart- 
ment and to officials of his high school, that he was abused 
by Harold Andersen, Larry King, Alan Baer, and others. Henry 
Rosenthal, then Bonacci's attorney, spoke to the Franklin com- 
mittee about this on June 21, 1990. 

ROSENTHAL: I talked to his people at school, you know, 
because I- 1 had some severe doubts about this fellow telling 
me about that. But his problem-one day he went kind of 
outer space in school and they thought it was drugs and it 
really wasn't. This stuff was really starting to work on him. 
He just did not want to recruit anymore for Mr. Baer. 

SENATOR LABEDZ: He told us that. 

ROSENTHAL: But I talked to the school officials. You are 
talking about assistant principal at school, how many people, 
4,000 students. I talked to his head counselor and they said 
it's absolutely true. They phone the police department and 
said he's in the hospital, are you going out to interview him? 
"No, we have closed the case." When he mentioned those 
prominent people, those people [school officials] told me 
you could just see like they closed their eyes and their books 
and was gone. 



128 



THE CREDIT UN ION 




Lawrence E. ("Larry") King, manager of the Franklin Community Federal 
Credit Union. 





Thefonner headquarters of the Franklin Credit Ul/;0l/. ;1/ north Omaha. 






1 



The rear of the Franklin Building . Credit union employees reported that King 
hada bedroom built into the lower level J ar afternoon trysts with homosexual 
lo vers. 




Larry King's house at 
207/ Win Street, the ad- 
dress that abuse victim Lo - 
retta Smith gave Officer 
Carmean in 1988, as a 10- 
cation of drug and sex 
parlies. 



THE VICTIMS INDICTED 




Alisha Owen on her way to a court appearance. 



Caporaso Corp. 




Paul Bonded in pr;S(/U . 



Caporaso Corp . 



THE COMMONWEALTH MODEL 




Governor Bob Kerrey oj Nebraska, now a U,S, Senator unci presidential 
candidate, signing a bill in 1986. Directly behind Kerrey Senator 

John Detlamp, then head oj the Legislature's Banking, Commerce, and 
insurance committee, 




Citixens 

KEBKEY 
? 

tern****!*!'* 1 . 

■• at «» Wo,!rt 



T^;!?i^«" 



i,i-j<" 




A broadside issued in 1988 by Concerned Citizens [or Responsible Govern- 
ment, tnc; which investigated Kerrey' j role ill the collapse OlCommonwealtlt 
Savings and his preferentiul treutment llf State Security and other institutions 
owned by his associates. The governor's 1983 press conference about Com- 
mllnwrulths dificulties triggered the run on the bank. 



THE FRANKLIN COMMITTEE 




. Senator Loran Schmit, chairman of 
the Nebraska Legislature's Frank- 
lin committee. Afarmer and a 23- 
year veteran of the Legislature, 
Senator Schmit persisted in the 
Franklin investigation, despite vili- 
fication of him in The press, death 
threats, and attempts to ruin him 
. financially. 



Senator Ernie Chambers, who co- 
initiated the legislative probe of the 
Franklin scandal. 





The late Gary Caradori, investigator for the Legislature ' s Franklin commit- 
tee, with his airplane. He and his eight -year- old son, A.J., died when it 
crashed on July /I, /990. "There were a lot of people who wanted to see 
Gary dead, " said Senator Schmit that day , 



PAUL BONACCI 




.•-,■-.;. ,.-*•'•; 



Paul Bonacci as a child. He 
was abused beginning at the 
age of six. 



•Hi 



&. 



m 



sta 



_t* 



Jkadu rf,>iifft q+ i<ijijtl.^JitS.h-J. 



IrisL 




is xaj_ jftsLj ijLt.uLaJi_C5-P.i-rtx-.. \1sli3.i -jh>i i 



ajaldLjAi- 3o -J&diiiJk e„i(Lu4- ix. haS£ is<i>t$.M.b ko 



;^{S, ; .___j^2JoAtaaj: **('L_4»3j«*i_i_aj_ 

t'gL-d— AjaUoh j.aa£.-J!.gpj.j, if) ,*_ 2.3.-re,e.A. JAL9.y--g*- ^ =ut5_y3<4i_ 



*JL'— ■ isi_3iji!3L2i_s,iJl_3a.li*Li._iti<>.<l__.. 



A /effer written by one of Palll Bonacci' s personalities, who experienced 
Satanic cult activity and only writes backwards, If held up w a mirror, it can 
be read in the reflection. 




Dr. Judianne Densen-Gerber, New York-area psychiatrist, lawyer, child 
abuse expert and member Ollhe International Society ofMultiple Personality 
and Dissociative States. She interviewed Paul Bonacci at the request of the 
Senare Franklin committee, and testified that "it would he very difficult for 
Mr. Bonacci to lie." She has cited evidence known to her, corroborating 
several of Paul's specific recollections . 



■I 




Caporaso Corp. 
Dr. Beverly Mead, psychiatric consultant to the Omaha Police Department, 
examined Bonacci for the OPD and was the first to diagnose his Multiple 
Personality Disorder. Mead has said many times, that Paul is telling the 
truth. 



THE GRAND JURY AND THE 
OMAHA WORLD-HERALD 



©malm SBorld herald 






Grand Jury Says Abuse Stories 
Were a 'Carefully Crafted Hoax' 



TRree Indicted; 
ManyRianors 
Are Debunked 





Sciwit Rejects 
Report, Defends 
His Committee 




The Omaha World-Herald front page of July 25, 1990. two days after the 
Douglas County grand jury indicted the Franklin victim-witnesses, trumpets 
its "hoax" conclusion, The front-page pictures highlighted Senator Schmit, 
Alisha Owen, and multi-millionaire socialite Alan Baer. Named by Franklin 
victim-witnesses as an abuser, Baer was indicted by the Douglas County 
grand jury for "pandering" unrelated to Franklin. He pleaded guilty to a 
lesser charge, paid a $500 fine , and went free. 




S^lSSST 



»«£££■ 



z.ts&S'. %i 



S ''?2r£§2 ; S sSkS* 21 * 






After the Douglas County grand jury redefined "Owen as the perpetrator 
and Wadman as the victim, " the World-Herald labored to repair former 
Omaha Police Chief Robert Wadman's reputation. This feature appeared 
November 18, 1990. 















Grtmaha SHciriri -1* raid 

Editorial Page 



Committee Rushed to Judgment 

Schmit Panel Can't Duck 
Its Responsibility in Hoax 

Loran Id— ri IraaraSv rtMM <*oaU »** » WMMMNI tar Ik* -aear, I 

ftawryail 

'Mi U r 



I hjr iwnnn ~tka Fnakbo Wy« ItUj *)*»1 fcmi«**t 

- Rctemni ig wh*> M HJ4 XT* t. *f irf Ml (MMM 
whki cam .matt ;<«• » n- tMwjiWgrl 'it~ 1' 



WtM— I— ■«• ' 

JrMHH* tta» 

■» -frttaat*-' and <o "pu « tofattaw Taw • ■*■! <--. - 

pnnarly and Ww x io Hie pn«r Iran *« «ay Sduna daa<mafy ** WwrlfMO iw fimi'iWy if 

Mhortta." a* raid' "1 da»r not yn i»Mil lkiM tmolih n* H y . c i i» * M ii Ciyi<U )ttiK H — 

iewo.sJp;..' ^aadctSarpaonta w t— t m arkup p g l j lii . l j la p— * r a SBSS wSSS KSS 

cwawci-1 .im iar c«im««Uw1 ,^ ■ ■. ,■-,—-- — a* *m Cntfant Mia* -«n < 

wct pj- ■ygW io|Hfr propartr ai if > jm ajM wta: ta» nik» — J at. TW w»«h w tj !»»■ *•■**» ■ 

Gary Canton made ir*v>4niap*»Nf in K B liii— I i hii— i 

tc* Cv*n m ■ p*a a* »fc l-na amy Hw«i««i«w m«r k »i»w) tt« c n .-ma nu- 
al data ataaa. Ml alNM Mi ry^ri.tlM'Mfiki-tninvM. W. 

drug na*ri« Tmo ot ih* tan* ten nr u*g later*: <*wvi(a»ni it*y Yaa, ■ ct»Jd Not W net*- lu" ■ 

tWU «nM *ai i»*y M i (n* p*) M art la Ca<*4ton Sif.citi mi Ml d»i/l*t«t.tt**TWattm»<u1ylama)iB-- 

>irye*:>.T«£!inei».ni<o«BtiMT\ .jr- *" 

Leau «•<- -J am t."ur tdntf. <a :>, 



r,appavcrrdica7uim 



*a™ ot tram. 0***M w b* ^" " , -**?.7T- ." , ». 
dank rillin af laaaai aM ie*aaa " >"■***<■■ ™*» ™** ln * 1 Wta^r 

Ji^^ - J5t!3^Si!lt^2!E inrwlaUiiMMinaw , ,Ui> 

X^2Z£t£5VJS!ZZi —- • ~ -TtV. ***** »• , , rharVLCS m 

abuse on *e Let 



THE AK-SAR-BEN CROWD 




The exclusive 

Ak-Sar-Ben club, comprised ofthe /.„ j- „ in I 

, . ' J leading figures r, 

business community , flaunts its "'Zarre rituals in its publicity Omaha 

A ' ■ OWN 

A 1967 book -on Ak-Sar-Ben by nrvid E. Nelson, Jr., COmmis sioneWbqrihk, 

Ak-Sar-Ben Bn^' rA ," f Governor.h, displayed this ■ of a 1923 Ak-S 

■mowing picture 

Siff/^tflMvity, male Ak-Sar-Ben members dressed as Egyptian ar_ 

danc- 



77*yCn* *> Omaha, Slate' a\^> 

'Ak Krafts Don't Control Gty 




rPJ.a 
aftaaiiliinthep 
of Afc - Sa r D e n. HJWHtfwfc O— I 
m»aetymnmyorUli»Mi» ua*nlul »nn 
other aanorton- and laaattafravabhasj coo> 
o»«o»alIw<a»duletoeddrr» 

ktorajei MM, "Frntndy. ] em a*k and Itred of 
a ml ha«hu1 of people who Oak they can 
control una ctty and coxy without laniitllo 

banawonuni, people who ere the reel toyndn- 

Bonof UttH illlJllll/ * 

1 mi aasgjad by Bus cooNnem beceuee from 
ill I have hoard and read. I dunk a ■ sir to 
> mayor lo taltat about ear 
a end counculon. Tha Kasha 
o/ Ah fir Ian deal sTaaaal dm city They give 
to nas oty and bum, and have done at lor ■ 
nan. 

The maedaas of the board and council oon :t 
Head a pel on the back, but mas easuratv thev 
4aitibaaiiaanlanlntt.e»o;- 

Lat autahevou for a vjometnooa toumrv 
throunn Oanaha and the ante. Tha joumev 
teTjEaanyoaart.anrtivaadbnaa.but 1 behove li a 
bnedtat BV-- ' — qs of that ctty 



The Board d Govomon 
and counoBor* of Ak-SavBen 
'tfcnt need « pai at the hick 
but ■Ml anil they don't 
cfeHmailbpintbeface.' 



The 

no 



City Roundup Parade. Th» River cay 
leatnaj at a imtanehia cay ■ " 
even ryma, all at rl daiiel u together 
Kaajaa of uMar-aa a bcaaj. ttaaJcaaO 

be tnajor supporters. 

On our journey, tha Rhnr Cay 
Parade peas right by tht Orphean Theater, a 
theater Baal aaaual but In I nam djo avasnaiaf 
AkSar-aen ateppad M l aid M heap at ill 



We contavje a ,t a 1 aa ar dnow tai our tourney lo 

die Henry Daotty Zoo. one of America's moat 

outstanding twa. It. loo, wai almost dead when 

the Kraahti of Ak SarBsv u et tl d at ed a aa* 

nulliordoUars to getu back oaks feet •> 

"TV katrttey caotaaiaa aaajla and we aee such \ 

places ai FoatetaSle Forest, Beflevue College! 

and ORurt Mr Force Base ... all three navel 

been bewftcaules of Kniabu of Ak-Ser-Benl 

support J 

''•vue Cofleaje rettands tr* of 

••e bead to yet aaoOter 

**« received 



in (his December 9, 1990 World-Herald article, the Ak-Sar-Ben Board of 
iatiueuiiors chairman , % ra CEO Mike Harper, defended the Organi_ 




'.- '■■■■•- ■ ' - ' ■;■ 



This spread in the November 1991 Metro Monthly, based on Ak-Sar-Ben 
publicity photos of its 95th coronation ball, showed Union Pacific Railroad 
chairman Michael Walsh and CEO Walter Scott of Peter Kiewit and Sons, 
the construction company, in attendance. The Union Pacific Foundation and 
the Kiewit Foundation were depositors in and contributors to the Franklin 
Credit Union. Wearing the crown and long train is former Nebraska Game 
and Parks Commissioner Eugene Mahoney, King of Ak-Sar-Ben for 1991. 
One ofthe most powerful politicians in the state, Mahoney was investigated 
by Gary Caradori. 




Harold W.Andersen: 
A NativeSon'sSto,y 














u ffed Us (n 



retire. 



as 



,dlwibl' s 

in These '9° 



irherHoro 



ofclS\ 



Id An dersen. 
Preside 

S Depar/menl 



... „ r id-HcraW oiekn "P case healed 1 *" ' , adviser 10 Ilf.V' : Boordof ,he 
The^° i he Fron In milleeoW . /ie AJ visor> ' " ive, 

ecM"Y, J Freedom com, choirmonofl I f..„drai !iin ^ dr 

JaPres^ . * a so . „_• fjigges 



espec 



oflheWo - i Andersen wa': a" i p^flnfc^ 11 s 

rct/ii/> Hard" ... J ftea e a 

o/Sta'*' 3', Union an" 

Franklin Cre i 



THE WASHINGTON 
CONNECTION 



Furim feds make shtxkiitg (horse ogm'mt high-Hpng betshok 







Larry King's party -giving at the Republican national conventions was the 
stuff of tabloid headlines, as this write-up in the Weekly World News of July 
25, /989 showed. The picture shows King with Maureen Reagan at his /984 
convention party at Southfork Ranch, near Dallas. 




House on California Avenue, off "Embassy Row" D.C.. 

rented by Larry Kingfor $5 ,000 a month, King' s parties here were attended 
by officials of the Reagan -Bush Administration and members of Congress 
from both parties, accordin g 






\ual prostitution inquiry 
zmm VIPs with Reagan, Bush 



Thefront page of the Washington Times, June 29. 1989. 




)c ]HaoI|ittf|toH (times 



i 



Top Japanese politician linked to Spence 

Press 'watchdogs' forgot to bark , < iwsktercd 

I.OPdwkv 
fivr premier 



lfek\*** Intdc chief tjrp? 







In a July 5. 1989 follow-up story, the Washington Times highlighted the 
connections of Craig Spence. central figure in the WE\hington "mil boy" 
scandal, According 10 Washington insiders, Spence ran a prostitution busi- 
ness with Larry King. Spence was found dead ina Boston hotel room in 
1989. 



THIS CASE IS NOT CLOSED 




A 1982 by David Thorstadt of the North American Man- 

Boy Love Association (NAMBLA). whose slogan is "Sex before 8 . or it's too 
late, " Paul Bonacci testified to being transported and abused by NAMBLA. 





t.A 



Caporaso Corp. 

John Gosch. Sr. with a poster of his missing son. In 1983. at the age ofll'r 
Johnny Gosch was kidnaped while on his newspaper route in Des Moines, 
Iowa. In 1990 and 1991. Paul Bonacci provided dramatic new information 
on the Gosch case. 



REWARD 




JILL CUTSHALL 

*:-» I ■*» t.«»g Blonde Hair 

O..I* o* B(f*h'- . 19/78 



Caporaso Corp. 




Jill Cutshall, 9 years old, was kid- 
naped from her home in Norfolk, Ne- 
braska in 1987. She was never seen 
again. Investigator Roy Stephens 
helped trace David Phelps, who was 
convicted ofabducting her for sexual 
abuse. In 1991, Stephens investi- 
gated and confirmed leads provided 
by Paul Bonacci on other major kid- 
naping and abuse cases. 




nll'ast.i. usati come piccoli schiavi. Uno 
»6»nd»lo americano »»«l» my orrendo morcato planetaria 



The Italian weekly Avvenimenti, circulation 300.000, printed an explosive 
expose of the Franklin scandal. The authors were Italian investigative jour- 
nalists, who visited Nebraska in May 1991. 




Caporaso Corp, 
The Rev. James Bevel, dose associate of the late Dr. Marlin Luther King, 
Jr., leads a picket line during 1991, against the cover-up of child abuse in 
Omaha. 




An entrance w the Nebraska State Capitol. Over the door is inscribed: "The 
salvation of the slate is watchfulness in the citizen. " 



CHAPTER 12 



THE OMAHA 

BUSINESS 

COMMUNITY 



Senator Schmit warned the Franklin committee at the outset, 
not to expect to breeze through an investigation like this. "No 
one person," he told the Executive Board session of December 
12, 1988, "could have masterminded this without the compli- 
ance and the acquiescence and cooperation of a number of 

people, some of whom had to be in official positions I do 

not want anyone to say I want to be on this committee, then 
all of a sudden say, wait a minute, I don't want to walk through 
that mine field with you, because that is what it will very likely 
prove to be." 

Senator Chambers, who represented the black district of 
north Omaha where Franklin was headquartered, agreed: "What 
Larry King is doing is the tip of an iceberg and he's not in it 
by himself. One thing I told the Attorney General ... is that 
I don't want Larry King to commit suicide and I don't want 
any accidents that will take him out. What he's doing he has 
not done by himself and couldn't do by himself." 

With over forty years in the Legislature between them, 
Schmit and Chambers knew whereof they spoke. Behind Larry 
King's rise to fame and riches stood some of the most powerful 
figures in Nebraska politics and finance. 

Larry King himself bragged about his connections. "I felt 
that I could call anyone in this city," he told the TV interviewer 
who questioned him about favors from Chief Wadman. In a 
September 7, 1988 interview with the Omaha weekly Metropol- 



129 



THE FRANKLIN COVER-UP 



itan, before the Franklin Credit Union scandal broke, King was 
more expansive about his friends: 

They were the key to my success. I had really great, great 
people who were counselors and teachers, who were over 
some of the major companies in the city. And I would go 
to them and ask them what they thought I should do and 
sometimes they would come and sit down or send someone 
out to talk with us. Harold Andersen of the World-Herald 
was one of the great people who came out. Bill Fitzgerald 
at Commercial Federal Savings and Loan. I called him once 
years ago when we were in a crisis and he said, "I'll be 
there at 7:30 tomorrow morning." And so he was. So I have 
to say the Omaha power structure has some of the best 
people to work with. They'll help you if they're convinced 
you want to help Omaha. They don't turn their backs: they 
have never done it to me. And I appreciate it because I like 
being a part of what makes this city grow, and this country. 

Had the "Omaha power structure" merely extended a liberal 
hand to a young black man trying to get ahead? For some of 
the city's elite, perhaps that's all there was to it. 

Days and even weeks after the raid, some of Franklin's 
backers were still defending King. The World-Herald of No- 
vember 9, 1988 quoted its own publisher, Harold Andersen, 
Ken Power of US West Communications, and Lyn Wallin 
Ziegenbein of the Kiewit Foundation, in praise of King. "Until 
the day it closed, Franklin was performing a useful purpose," 
Harold Andersen said on November 30, 1988. 

Yet someone making even a casual inquiry- such as a busi- 
nessman might be expected to do before he contributed or 
deposited hundreds of thousands of dollars in a credit union- 
would quickly hear the kind of warning Boys Town social 
worker Julie Walters did, when she asked around about King. 
They would have heard he was a dangerous man, and they 
would have heard about pornography, drugs, and pedophilia. 
Some, at least, of these "great people" from the major compa- 
nies, had to know precisely what they were doing when they 
sponsored Larry King. 



130 



THE OMAHA BUSINESS COMMUNITY 

In Gary Caradori's files is the transcript of a February 12, 
1989 phone conversation with Sheila McGuire, aka Sheila Cal- 
der, former manager of the French Cafe, who had moved to 
the West Coast. This night spot, partly owned by Larry King, 
was named by victim-witnesses as a center of sexual abuse. 
Alisha Owen told Caradori that "Sheila Calder would arrange 
parties at the French Cafe during the afternoon when the cafe 
was closed." 

Here is what the hostess had to say: 

We had parties in my apartment above the French Cafe. 
Larry King would wine and dine potential investors down- 
stairs at the Cafe. When the French Cafe closed about 1 AM, 
King and his man called Parking Lot Bob- who worked for 
him (and was our coke connection)-would bring people 
upstairs to my place. I f Larry King investors wanted drugs, 
booze, children or hookers (male or female) we'd get them. 
While these guests of Kngs took their pleasures-with the 
kids or whoever-King would sit and watch-while he 
drank, did coke and played with his young boys 

One time, when this guy Irv from NYC wanted Sandra- 
who was about 12 or 13 years old and getting her 1st period, 
Larry intervened when Sandra refused. Kng pulled out a 
roll of $100.00 bills and gave Sandra 5 of them. Kng then 
pulled out a small gram of coke and gave that to Sandra. 
Sandra finally agreed and went off to bed with Irv. 

Kng took good care of the local and out of town high 
rollers. If you had the money to invest at Franklin, King 
would cater to your most deranged perversion. And, let me 
tell you another thing. The boys in the board rooms around 
Omaha are s— ing in their Brogans. If this case gets cracked 
open the list of involved will read like Who's Who. King 
and his crew have ruined a lot of childrens' lives. 



Two years after the raid on King's credit union, as the 
legislative Franklin committee's original term drew to a close, 
an old hand in Nebraska politics reflected on the events of the 
past 24 months. "The Omaha business community," he said, 



131 



THE FRANKLIN COVER UP 



"the Ak-Sar-Ben crowd, has really closed ranks behind Alan 
Baer, Andersen and the rest of them. The word has gone out: 
layoff the Franklin investigation. Most of the Senators are 
terrified. These guys make and break political careers. They 
give a lot of campaign money, and many of the Senators get 
what are generously called 'consulting fees,' or sometimes 
positions-no-show jobs, really-with the big firms up there. 
That's the way it's done. It's not uncommon for a big company 
to have more than one Senator on a $50,000 retainer." 

Who were "these guys," the Ak-Sar-Ben crowd? 

Visit the Omaha Public Library to look up the boards of 
directors of big Omaha companies, and you will find names 
that are listed on board after board. Take a few of those-say, 
Walter Scott, Jr., chairman and CEO of the construction giant, 
Peter Kiewit and Sons Corporation; Charles "Mike" Harper, 
chairman and CEO of the $20 billion per year food conglomer- 
ate ConAgra; Michael H. Walsh, CEO of Union Pacific Rail- 
road, a major force in Nebraska for over a hundred years- 
and ask the librarian to help find information on these men. 
The reply will likely be something like what one library staffer 
told a friend of mine in 1991: "These are businessmen all right, 
but they are intensely secretive. We have very little on them." 

For over a century, the Omaha business community has 
been organized around the Knights of Ak-Sar-Ben, a quasi- 
freemasonic social organization, centered on a racetrack and 
fairgrounds in Omaha. Spell "Nebraska" backwards and you 
get its name. Founded in 1895, Ak-Sar-Ben functions as a sort 
of central committee of the corporate elite, and a self-perceived 
oligarchy for the city. 

Every year Ak-Sar-Ben celebrates a ritual coronation of the 
"King of Ak-Sar-Ben,' generally an older corporate executive, 
and his Queen, generally the younger wife or daughter of 
another man in the club. The king for 1990 was Mike Harper 
of ConAgra. Here, and at debutante balls and other affairs 
organized for the younger generation, the lords and ladies of 
Ak-Sar-Ben establish their social pecking order. The rituals 
and "den shows" mimic ceremonies from different lands, real 
and invented, and always pagan. Past Ak-Sar-Ben festivity 



132 



THE OMAHA BUSINESS COMMUNITY 

themes included: "The Roman Hippodrome," "King Arthur's 
Wild Goats," "Trouble in the Tropics," and "Hi-Jinx in Hades." 
Sometimes the men and boys of Ak-Sar-Ben paraded in wom- 
en's clothing, or dressed as Egyptian goddesses. 

Ak-Sar-Ben's clout is so legendary, that Omaha Mayor P.J. 
Morgan, himself a member of the Ak-Sar-Ben social set, could 
make political hay by a demagogic attack on it. In 1990, during 
a squabble with Ak-Sar-Ben over where a new stadium would 
be constructed, Morgan blustered, "Frankly, I'm just sick and 
tired of a small handful of people who think that they can control 
this city and county without regard to feelings, sentiments and 
desires of the honest, hard-working people who are the real 
foundation of this city." 

Sensitive to this widespread perception, ConAgra's Harper, 
speaking as chairman of Ak-Sar-Ben's Board of Governors, 
replied in a special World-Herald column on December 9, 
1990, "Ak Knights Don't Control City." Just because the indi- 
viduals and corporations on Ak-Sar-Ben's board had given 
over $50 million to various causes over the past 20 years, wrote 
Harper, ticking off a list of most of the public facilities in 
Omaha, that did not mean they had clout. am at a loss to 
see how contributions to reputable charities can be associated 
with political power." 

Harper's own company flaunted its political power over the 
city and the state, just a few years ago. According to "Omaha 
Held Hostage," a May 1989 article in Progressive magazine, 
ConAgra threatened in 1987, to pull out of Omaha, unless the 
city granted it a choice piece of free land, sewage, paving and 
a host of other benefits, which will ultimately total as much 
as $60 million, for a new corporate headquarters. The city 
acquiesced. Later the same year, when the Nebraska Legislature 
was on the verge of removing personal property tax exemptions 
on purchases of jet airplanes and mainframe computers, Harper 
put out the word to the legislature: Change the tax bill, or 
ConAgra leaves Nebraska. The bill was changed. 



133 



THE FRANKLIN COVER-UP 



Ak-Sar-Ben has been ruled for decades by its Board of 
Governors, a roster of sixteen influentials (increased to 
twenty, in 1990, "to better represent the entire community," 
according to Mike Harper), most of whom are chief execu- 
tives of major corporations. In the late 1980s, the board 
included: 

Charles "Mike" Harper, President and CEO, ConAgra 
William A. Fitzgerald, President and CEO, Commercial 

Federal Savings and Loan 
Bruce Lauritzen, President, First National Bank of Omaha 
David A. Rismiller, Chairman and CEO, FirsTier Finan- 
cial, Inc. 
Walter Scott, Jr., President and CEO, Peter Kiewit & 

Sons, Inc. 
Thomas J. Skutt, Chairman and CEO, Mutual of Omaha 
Michael H. Walsh, Chairman, Union Pacific Railroad 
Michael Yanney, Chairman and CEO, America First Cos. 

These corporations poured millions into the Franklin Credit 
Union, in the form of deposits and outright contributions. Their 
executives supported King, in arrangements both informal 
and formal. 

Bill Fitzgerald, Knight of Ak-Sar-Ben and president of Com- 
mercial Federal Savings and Loan, helped his friend Larry 
King with advice. When the jig was up for Franklin and the 
Consumer Services Organization, King's close associate CSO 
director Barbara Moore could find employment with Walter 
Scott's wife, Sue. 

Mutual of Omaha placed funds in the credit union, while 
Thomas Skutt, chief executive of this insurance giant, co- 
chaired a $1.3 million fundraising drive for Franklin, with 
Harold Andersen. 

The Franklin Credit Union had two boards. The small, gov- 
erning board included Larry King, Jarrett Webb and James C. 
Hart, Jr., the secretary, who were named as child abusers by 
victim-witnesses before the Legislature's Franklin committee. 
The firms run by the Knights of Ak-Sar-Ben, along with other 



134 



THE OMAHA BUSINESS COMMUNITY 

prestigious Omaha corporations and law firms, showed up on 
the larger, "Advisory Board." 

On the Franklin Community Federal Credit Union Advisory 
Board were: 

Chairman Harold Andersen, publisher, World-Herald 
Rep. Hal Daub (R-2nd Congressional District) 
N.P. Dodge II, President, N.P. Dodge Real Estate 
Lamont Wallin, Kutak, Rock, & Huie law finn 
L.B. Thomas, Vice President, ConAgra 
Jerome Jamrog, Senior Vice President, Commercial Fed- 
eral Savings and Loan 
Arnold Nesbitt, Senior Assistant Manager, Union Pacific 

Railroad 
David Hinton, Assistant Dean, College of Public Affairs, 

University of Nebraska, Omaha 
Louis Lamberty. County Surveyor 
Samuel Marvin, President, R-Lynn, Inc., Council Bluffs, 

Iowa 
Leslie McAuley, Supervisor, Director of Quality Control, 

Northwest Bell 
Donald Miller, Vice President, Omaha National Bank 
Carolyn Rothery, Byrne & Randall, P.c, Omaha 
Dale Wolforth, Vice President (ret.), Murray State Bank 
John S. Zeilinger, attorney, Baird-Holz, Omaha 
Michael Albert, President, Albert Food Brokerage 
Angelo Amato, General Superintendent Customer Records 

Department. M.U.D. 
David Ambrose, Professor, Department of Marketing, Uni- 
versity of Nebraska, Omaha 
Joseph Barker III, Massachusetts Mutual Insurance 

Company 
Dana "Woody" Bradford, Bradford, Coenen, & Ashford 
Leo Eisenstatt, Erickson, Sederstrom, Leigh, Eisenstatt, 

Johnson, Kinnamon 
James Healy, Administrator of Urban Affairs, Northern 
Natural Gas 

L.B. "Red" Thomas headed up finances for ConAgra, which 
put funds into Franklin certificates of deposit. Union Pacific, 



135 



THE FRANKLIN COYER-UP 



and its executives acting as individuals, poured in money, while 
Union Pacific officer Arnold Nesbitt sat on the board. 

Ak-Sar-Ben interfaced with the Franklin credit union proper, 
but also with individuals in the orbit of Larry King. One of its 
biggest financial contributors in recent years was the department 
store heir and child abuser, Alan Baer. Catering for Ak-Sar- 
Ben was Gary West, bartender from the Max gay bar. 



As the Legislature geared up to investigate the credit union, 
its lofty advisors began to jump ship. At the Legislature's 
Executive Board meeting of December 12, 1988, Senator 
Chambers captured the picture: 

This situation will be like the Nazi regime after it failed, 
nobody saw Hitler, nobody knew who Hitler was, but one 
kid once saw an old man who one time knew a guy who 
talked to a guy who saw a car drive by with curtains on it 
and somebody said Hitler was in that car. That's the way 
this is going to be, nobody knows anything, nobody has 
seen anything, nobody knows why investigations in the past, 
by the federal government, were terminated. 

Sure enough, over the next months one board member after 
another would appear on the pages of the World-Herald, to 
deny he had really had anything to do with Franklin. Virtually 
nobody from the powerful firms that channeled funds to Frank- 
lin and advisers to its board, was ever questioned by the Franklin 
committee about his relations with the credit union. Once again, 
according to one veteran politician, the whiff of a ConAgra 
payoff was in the air: Those who helped cut short the Franklin 
investigation would receive campaign funding from ConAgra, 
and those who pursued it would not. 

For some of the Franklin board members, the ties to Larry 
King were too close to hide. Gary Caradori questioned one of 
them, Joseph Barker III of Massachusetts Mutual Insurance 
Co., on March 1, 1990. He wrote up their exchange: 



136 



THE OMAHA BUSINESS COMMUNITY 



At 1400 this writer arrived at the Massachusetts Mutual 
Insurance Company located at 90th and Dodge, Omaha, 
Nebraska, and contacted Mr. Joe Barker. Mr. Barker then 
did admit to writing policies for Larry King and his family. 
He stated that as far as he knew, he handled all of Larry 
King's life insurance. Mr. Barker stated that he had known 
Larry King for many years. He was not certain how they 
met, however, they did share some duties on church commit- 
tees and possibly several other boards When my ques- 
tioning started to center around social gatherings, Mr. Barker 
indicated with a nervous gesture that yes, he had been to 
some social events with Larry King, but that everything was 
always "on the up and up." He stated that throughout his 
friendship with Larry, everything was always "straight" and 
that he had never seen anything out of the ordinary. 

To the trained investigator, something didn't sit quite right. 
Caradori observed: 

This investigator noted that Mr. Barker seemed extremely 
uneasy while this writer was present. Further investigation 
will be conducted reference this matter. 

In other cases, Franklin Advisory Board members were one 
step removed from personal contact with King. One person 
from a company would sit on the board, while somebody else 
was more directly in touch. The law firm Byrne & Randall 
(credit union board member Carolyn Rothery) fit this pattern. 
Joseph Byrne handled much of King's legal business early in 
his career, and King used Byrne as a personal reference on 
credit applications, according to a February 17, 1989 report by 
Jerry Lowe. Byrne's partner, Gary Randall, was the lawyer 
who negotiated Jarrett and Barbara Webb's way out of trouble 
in 1986. 

Erickson, Sederstrom, Leigh, Eisenstatt, Johnson, Kinnamon 
(credit union board member Leo Eisenstatt) was retained by 
King and the credit union for various matters. Quoted by James 
Traub in a December 1991 article in Gentlemen's Quarterly, 
Leo Eisenstatt recalled, "The Kings came to our house for 
dinner, and we went to their house. We were one big, happy 
family." 



137 



THE FRANKLIN COVER UP 

An employee of Erickson, Sederstrom, Leigh, Eisenstatt, et 
al., Jay Derr, came to the attention of Caradori and the Franklin 
committee, in connection with King's sexual escapades. Cara- 
dori received reports from at least two sources, that Derr had 
taken a private flight with King to the 1988 Republican National 
Convention, where King organized one of his sex parties. In 
his notes of March 29, 1990, Caradori reported a local law 
enforcement officer receiving call from the DEA in D.C. 
requesting help on Jay Derr." Then Paul Bonacci testified about 
him before the Franklin committee on June 12, 1990. 

SENATOR LYNCH: Does the name Jay Derr mean anything 
to you? 

BONACCI: Yeah, Derr I know. Jason Derr. 

SENATOR SCHMT: Why is that name familiar to you? 

BONACCI: Well, there was a guy that was at some parties 
and stuff, he told me his name was Jason Derr. And that's 
all I remember. I mean, because he was having-you know, 
he asked me questions a lot and then he took me out some- 
times, a couple times, and gave me money and- 

SENATOR SCHMT: Did you have sex with Jason Derr? 

BONACCI: Yes. 

SCHMT: More than once? 

BONACCI: Yes probably four or five. 

SCHMT: Do you know of any other young lads that he had 
sexual contact with or among your acquaintanceship. 

BONACCI: Can't be positive, but I think a kid named Mark 
Powers. And I'm not sure if it was Danny or Troy, Danny 
King or Troy Boner. 



Among the backers and contacts of Larry King and the 
Franklin Credit Union, certain stand-outs deserve special atten- 
tion. These are Harold Andersen and his World-Herald, former 
state Game and Parks Commissioner Eugene Mahoney, Omaha 
multibillionaire Warren Buffett, FirstTier Bank, Union Pacific 



138 



THE OMAHA BUSINESS COMMUNITY 



Railroad, the famous Boys Town orphanage, and the Omaha 
Girls Club. 



Harold Andersen was King's biggest backer in the Omaha 
business community. He chaired Franklin's Advisory Board 
and co-chaired its fundraising drive, starting in 1983. These 
money -raising efforts lost some of their luster in 1989, when 
it was revealed that the money was used to build an addition 
to the credit union, the most prominent feature of which was 
a bedroom. The retreat was equipped with brass bed, a fluffy 
white comforter, a stereo and a television," according to former 
Franklin employee Noel Seltzer, quoted in the March 5, 1989 
Lincoln Journal. Others said King used it for afternoon trysts 
with his homosexual lovers. 

Andersen claimed that he did not know there was a bedroom 
in the addition he raised the money for, but Seltzer had a 
specific recollection, reported in the Village Voice: "When the 
addition opened, credit union employees say, Andersen gave 
guided tours of the new building. 'He always walked by the 
door and it was open,' says Noel Seltzer, a former employee. 
'He knew there was a bedroom in there, he had to see it. We 
did.' " Seltzer told the Lincoln Journal, that during Andersen's 
opening-day tour, "the door to the bedroom was open, . . . 
although it was kept locked after that and the room was off 
limits to employees." 

For years before the fall, Andersen's World-Herald chroni- 
cled the great works of Larry King and his associates. Its 
magazine, The Midlands, ran a feature article in 1983, full of 
praise for Franklin board member Jarrett Webb and his wife 
Barbara as model foster parents. 

The paper's incessant PR work for King, before and after 
the collapse of Franklin, was bitterly resented by many in 
Omaha's black community, as Senator Chambers said at the 
Executive Board session of December 12, 1988: 

This man that the World-Herald has pussy-footed around 
and tried to hold up as a role model for our children, a leader 



139 



THE FRANKLIN COVER UP 



in our community, is a gross insult to us ... and I get tired 
of seeing World-Herald headlines about the leader of the 
credit union, things that try to indicate that he typifies what 

our community is In the community there is outrage 

that the appearance seems to be to try to keep this man 
looking like a decent, upstanding citizen. One of the pictures 
you'll see is where he was catering something for one of 
the Christ Child centers in Omaha to make it look like 
he's a great guy. You'll see an article that talks about how 
generously he gave for AIDs research. If I'm stealing your 
money, it is easy for me to be generous with that money. 
In the black community $100 for the Boys Club, $100 for 
the Girls Club. For a gay outfit in Washington, D.C., $18,000 

at a pop So the reason I'm saying this is to indicate 

that I believe that the World-Herald tried to cover up. 

When Franklin collapsed, the newspaper viciously attacked 
victim-witnesses, parents, senators, and anyone else who per- 
sisted in seeking an investigation of the child abuse charges. 

It was company policy to protect the pedophiles, admitted 
World-Herald reporter Gabriella Stem in 1990. Asked why 
the World-Herald did not print information Stem herself had 
discovered about a young homosexual tied to Alan Baer, Stern 
shouted, in the presence of other reporters in the statehouse 
corridor, that "we have to protect the little fag because he 
would lead to the big fag," namely Baer. (When I mentioned 
Stern's exclamation, on a radio station KKAR program, World- 
Herald publisher Woody Howe called me to deny Stern said 
any such thing. But Stem herself confirmed to me that she had. 
Soon afterwards, she left the World-Herald to work for the 
Wall Street Journal.) 



Harold Andersen volunteered his fund-raising talents also for 
the Nebraska Wildlife Federation, a private entity established 
in honor of his close friend, former State Game and Parks 
Commission head Eugene Mahoney. The latter was to figure 
many times during the Franklin investigation, including when 



140 



THE OMAHA BUSINESS COMMUNITY 

Alisha Owen testified he was present at Larry King's sex 
parties. 

Mahoney worked on the OPO vice squad before he entered 
politics and became known as the "godfather" of many a politi- 
cal career. 

In fact, Gene Mahoney was the godfather of my own political 
career. I conducted my first successful election campaign, from 
Vietnam where I was an infantry captain, without ever setting 
foot in the United States. The publicity about that was important 
to my election, but there was another, secret powerful factor. 
Senator Gene Mahoney had become arch enemies with the 
senator I was running against, Bill Wylie. I chanced to fit 
perfectly into Mahoney's plans against Wylie. 

Back in Nebraska, while I was shooting at and being shot 
at by Viet Cong, Gene Mahoney was working for my election. 
He was to remind me later, that I never would have been a 
senator if not for him. 

Mahoney made politicians, and he destroyed them. Ask for- 
mer Omaha Mayor Mike Boyle, the only mayor of Omaha 
ever recalled from office. Mahoney engineered that recall. 

He worked behind the scenes, so that no one was ever able 
to pin the tail on the donkey. 

Gene Mahoney would demand that you be his "boy," once 
he put you in office. He might not call on you very often, but 
when he wanted your vote or your support on something, you 
had better deliver. I did not deliver, early on, because we 
disagreed on a major matter. As a result, I am supposed to 
spend the rest of my life doing "penance for Uncle Gene." It 
is a common joke among political folk in Nebraska, that if you 
cross "Uncle Gene," you will have to "do penance." 

Almost any politician in the state will confirm, that Eugene 
Mahoney is probably the most powerful politician in Nebraska 
in recent history. 

Gary Caradori' s dossier on Mahoney filled up with incident 
reports of another nature. One of his confidential informants, 
in an interview on February 22, 1990, recalled how he once 
returned Mahoney's car to him at a camp where, lacking wife 
or family, Mahoney spent time. 



141 



THE FRANKLIN COVER UP 



Immediately west of the Louisville State Park is a little 
camp near there with a half a dozen cabins in it. And Mr. 
Mahoney's is the far west cabin in that group right up against 
the river. . . . We took that car down there and went up with 
the keys to leave the, to identify the car, so here's the keys. 
And the door swung open and as I recall there was no screen 
or anything on it. And there stood a large, heavyset, fleshy, 
young black man absolutely in the buff with nothing but a 
big smile on his face. 

In retrospect, the informant thought, it was likely that the 
heavyset young man had been Larry King. That would agree 
with a report by Jerry Lowe from June 18, 1989, of an interview 
with a former Franklin employee: 

[Source] indicated that [Godfather's Pizza founder] Willie 
Thiesen's name had been linked with Larry King's as being 
homosexually involved . . . and that Kng had also had simi- 
lar relationships with Harold Andersen, Eugene Mahoney, 
and Bob Wadman. 

Investigator Robert Hansel of Caracorp, Caradori's firm, 
filled out the picture on October 1, 1990: 

Information was obtained that Mr. Mahoney has a cabin at 
the west end of Louisville Park. [The source] also stated 
that some sexual activities may have occurred there. He 
stated Harold Andersen was real close with Gene Mahoney 
and his name had come up on several occasions. The name, 
Nate Foley*, was mentioned. He stated he knew for a fact 
that Gene Mahoney had propositioned him in the past and 

showed him some photos [He] informed this writer that 

Mr. Foley did get very upset at the time when he was 
propositioned by Mr. Mahoney. He also stated that possibly 
Mr. Foley did get a promotion to keep his mouth shut about 
the incident. 

Mahoney was notorious, as Game and Parks Commissioner, 
for surrounding himself with good-looking young men. On 
March 16, 1990, Caradori recorded a description of Mahoney's 
travels, by a former pilot for the Game and Parks Commission, 
who used to fly him around: 



142 



THE OMAHA BUSINESS COMMUNITY 

During his time with the Commission, he stated that Eugene 
Mahoney always travelled with young individuals, i.e. late 

teens or early 20s Whenever Mahoney would travel, 

especially with his aides, they always had to stay in the same 
room or cabin with Mahoney. He stated that on numerous 
occasions Harold Andersen had also travelled with Maho- 
ney, which may have been to promote the State Games [sic] 
and Parks Commission, and also for fundraisers. 

Said the February 22, 1990 confidential informant, about 
Mahoney's ongoing activities: 

This park isn't quite done but it's got a major residence in 
there with an apartment above and below. Mr. Mahoney 
to this day, you know he's not affiliated with the Game 
Commission, lives in the upper half when he's around. The 
lower half, 10 and behold, has a beautiful blond, blue-eyed 
young male there that Mr. Mahoney found at about 18 or 
19 years of age. And he is kept there at state expense. 
He's the highest priced park superintendent in the state even 
though when he came in there he had absolutely no creden- 
tials. He'd never worked in a state park and didn't know 
anything about managing people or the wildlife or anything. 

On March 16, 1990, Caradori reported the observations of 
another source: 

He went on to state that Mr. Mahoney did like to cater to 
teenage boys and had participated in many outings with 
various groups of teenage kids, such as the Boy Scouts. 

With the help of Harold Andersen and Lincoln Journal-Star 
publisher Joseph Seacrest, over a two-year period, Mahoney 
raised more than $10 million for the new Mahoney State Park. 
According to Caradori' s confidential informant, "There's an 
assumption that there's some Franklin Credit Union money 
that went into that place." To identify where the park money 
came from, he said, 

the place to start quite simply in any state area is to drive 
through them and record the names off the cabins. Mr. 
Mahoney has this fetish about naming cabins and outhouses 
and pavillions and things after his friends. Everything is the 



143 



THE FRANKLIN COVER UP 



Harold Andersen this, V.J. Skutt that. And obviously those 
are the people who probably helped funnel money for that 
particular project, or something in that park anyway. 

Mahoney's political power and his role as a darling of the 
Ak-Sar-Ben crowd were captured in a December 7, 1989 article 
in the World-Herald: 

Gov. Orr and Sen. J.J. Exon, who have been at odds politi- 
cally for 20 years, were on the same side Wednesday in 
pushing the election of Eugene Mahoney to the Omaha 
Public Power District Board. 

Mahoney, who was appointed Nebraska Game and Parks 
Commission director when Democrat Exon was governor 
and who was appointed by Republican Gov. Orr to the OPPD 
post, said he reluctantly would seek election to the post next 
year. really hate campaigning," said Mahoney, a former 
state senator from South Omaha. 

He said he had planned to serve out his term and not 
seek election, but was talked into running by a group of 
prominent businessmen who where the hosts of a Wednes- 
day reception. 

Among those paying tribute to Mahoney at the $100-a- 
person fund-raiser at the Cloud Room at Kiewit Plaza were 
Walter Scott, Jr., chairman of Peter Kiewit Sons' Inc., Mike 
Yanney, president of America First Cos.. Attorney General 
Robert Spire, and Mayor Morgan. 

The crowd of more than 210 at the event, which raised 
more than $40,000, included corporate leaders, South Omaha 
businessmen, former Mayor Eugene Leahy and former Sen. 
Dave Karnes, R-Neb. 

"I've never seen anything like it in my life," said Yanney, 
a frequent sponsor of political fundraisers. "The great thing 
about Gene is he crosses all party lines and he does it with 
dignity. Gene Mahoney is one of the great men in this 
community and this state." 

Scott said, "Gene is a good hunter, a good fisherman, 
and a good sportsman. I'm grateful to have a man like that 
take on a specific post like OPPD." 

In September 1991, Eugene Mahoney was crowned King 
of Ak-Sar-Ben. 



144 



THE OMAHA BUSINESS COMMUNITY 



As essential to Franklin as Andersen's fundraising and pub- 
licity were, the credit union could not have functioned for a 
single day without the complicity of Nebraska's largest bank, 
FirsTier. Before coming to Franklin, Larry King had been a 
management trainee at Omaha National Corporation, one of 
the institutions that merged into FirsTier in 1984. 

Every dollar that went into Franklin Credit Union-the miss- 
ing $40 million was no exception-went into its account #153- 
7-353 at FirsTier. 

"There would sometimes be a million dollars coming in in 
the morning and a million leaving in the afternoon," said one 
person familiar with the investigation. "The amounts were 
astounding, and remember this is a $2.6 million credit union. 
There is no conceivable way in the world that FirsTier was 
not fully aware of what was happening, as far as gross irregular- 
ities." 

FirsTier would cover for Franklin when the credit union 
overdrew, as one disgruntled FirsTier official told former 
Franklin employee Noel Seltzer. Senator Chambers charged in 
early June of 1989, that the large volumes of Franklin transac- 
tions, occurring in such short periods of time, should have 
raised suspicions about the nature of its business. 

This was just business as usual, protested the officers of 
FirsTier. Bank Vice President Donald Petersen told the Lincoln 
Journal on June 5,1989, "Franklin Credit Union had acommer- 
cial account with FirsTier Bank Omaha that was no different 
from our standpoint than other commercial accounts. We clear 
incoming and outgoing items for our customers, but the cus- 
tomer is ultimately responsible for each transfer in their ac- 
count." 

During Franklin's heyday, the board of FirsTier Bank and 
FirsTier Financial Services was a who's who of the Omaha 
business community. On it were pedophile Alan Baer and 
Knight of Ak-Sar-Ben Walter Scott, Jr., the Kiewit Construc- 
tion chairman who was known in the business community as 
"one of the real powers" in FirsTier. 



145 



THE FRANKLIN COVER-UP 



Donations to Franklin through the Union Pacific Foundation 
made the Union Pacific Railroad one of Larry King's biggest 
corporate backers. Its individual leaders, like former Union 
Pacific Chairman John Kenefick, deposited funds at Franklin. 

According to reports out of Omaha's homosexual commu- 
nity, the old Harriman family railroad overlaps other areas with 
King. "The company is well-known for two things at the top: 
homosexuality and freemasonry," said one knowledgeable 
person. 

Is there a tradition or obligation of homosexuality among 
top Union Pacific executives? 

The Legislature's Franklin committee heard testimony from 
a former Franklin employee, implicating two Union Pacific 
executives in the recruitment of "young kids for Larry King's 
friends." Robert Andresen, the pedophile whose brutality was 
so heavy-handed that even the Douglas County jury mentioned 
(but did not indict) him, worked for Union Pacific. 

So did the foreman of the grand jury! The Douglas County 
panel was headed by citizen Michael Flanagan, an employee 
of Union Pacific Railroad for 27 years. Given that Union Pacific 
personnel were implicated in the matters under consideration, 
there would have been a conflict of interest for any UP employee 
sitting on the grand jury. In the case of Flanagan, there was 
more to it than that. 

In the summer of 1990, while the Douglas County grand 
jury was sitting, I received a call from a person who identified 
himself as an executive at Union Pacific headquarters in Omaha. 
He declined to give his name, saying, am too old to start 
over. I have too much vested in a good salary, position and 
pension. But I do not feel I can sit idly by." 

He defended Union Pacific as a company that was good to 
its employees and, he thought, good for the country. But it had 
been taken over by a homosexual element, which tolerated, 
condoned and encouraged a code of sexual conduct he felt was 
abhorrent. Even this would be no one's business, he said, unless 



146 



THE OMAHA BUSINESS COMMUNITY 

it was being imposed on people, using the power of UP in 
Omaha and Nebraska. 

At first, I thought the man might be trying to make an issue 
of some minor homosexual relationship, and I told him I was 
not interested in "bashing" homosexuals. I said that I didn't 
care what adult men did with their sex lives, so long as they 
do not abuse and hurt children. I could have told him, but I 
didn't, that my own brother had died of AIDS in California 
just the year before. My brother was a homosexual; he was 
also one of the best human beings on the planet. 

My caller's carefully chosen words quickly dispelled the 
notion that he meant insignificant incidents, and led me to ask, 
"Are you talking about the head of Union Pacific, Mr. Walsh?" 
While the information he provided satisfied me that my concern 
about Walsh might well be valid, the caller made it clear that 
this was not the immediate point of his contacting me. 

What he had to say, was that the foreman of the grand jury 
had committed impropriety of such a nature and degree, that 
Union Pacific had to reach a private financial settlement to 
protect him. 

"I believe if you will check out a former very young male 
Union Pacific employee named Pike*," said my caller, "you 
will discover that Mr. Flanagan made improper sexual advances 
upon him, and he complained to Union Pacific officials. A 
financial settlement was reached by Union Pacific and the young 
male individual was paid a substantial sum of money by Union 
Pacific to keep quiet, go about his business, and find other 
employment. " 

I began to investigate, and found the facts accurate. Here is 
how they were summarized in a lawsuit, filed by me on behalf 
of Paul Bonacci: 

The Grand Jury Foreman, Michael Flanagan, should not 
have been allowed to be Grand Jury Foreman because he 
himself, Michael Flanagan, had been recently involved in 
an incident in which he, Flanagan, was accused of pandering 
and in which he, Flanagan, and his Company, Union Pacific, 
had reached a civil settlement to suppress such incident and 
satisfy the demands of the individual making the complaint 



147 



THE FRANKLIN COVER-UP 



against him. Thus, the Grand Jury Foreman was being liter- 
ally asked to indict other individuals whom Bonacci was 
identifying for the very things that he, Flanagan, had been 
accused of and reached civil settlement to avoid like indict- 
ment and prosecution. 

Through Flanagan, the suit also charged, Union Pacific was 
directing the grand jury: 

Further, Flanagan himself violated his Grand Jury duties 
by sharing Grand Jury information with other individuals, 
including lawyers and others he met with on a regular basis 
almost every day following Grand Jury proceedings at Union 
Pacific Headquarters in Omaha, and receiving advice and 
guidance from them on how to proceed in the Grand Jury 
proceedings and providing them information on the suppos- 
edly secret Grand Jury proceedings themselves. 



One of King's earliest boosters was the wife of a man with 
an unrivaled reputation for shrewd investments-Warren E. 
Buffett, chairman of Berkshire Hathaway. Based in Omaha, 
Buffett is the second biggest stockholder in the Washington 
Post and a controlling power in ABC-TV. In 1991, he acquired 
large blocks of stock in American Express and Wells Fargo 
Bank. When Salomon Brothers faltered in August 1991, the 
owner of 13% of its stock-Buffett-stepped in as interim 
chairman. With $4.4 billion to his name, Buffett is ranked by 
Fortune magazine as the 24th richest man in the world, and 
in the United States is among the top five. In Omaha, the 
Buffett mystique gains from the fact that there are two hundred- 
some "Buffett millionaires," who made their fortunes by invest- 
ing through Buffett's Berkshire Hathaway. 

Buffett favors the multiplication of money, but not people. 
He contributes to groups advocating radical population reduc- 
tion. His Warren Buffett Foundation lists hundreds of thousands 
of dollars in grants to Negative Population Growth, the Associa- 
tion for Voluntary Sterilization, Planned Parenthood, the Popu- 
lation Council and Population Institute, the Sex Information 



148 



THE OMAHA BUSINESS COMMUNITY 

and Education Council, and Federal American Immigration 
Reform. Negative Population Growth members, according to 
the group's literature, "believe that a drastic reduction in total 
population size represents the only viable option consistent 
with human survival." NPG wants the United States, and then 
every country, to enact programs to drop the U.S. and world 
population to one-halfits present levels within 90 to 100 years. 
Buffett contributes approximately 7% of NPG's total budget. 

Language about Buffett, and his own, abounds with refer- 
ences to his "cult." A 1991 Washington Post write-up of his 
annual shareholders' meeting quoted guests along those lines: 
"It's like worshipping at the altar of the high priest of fi- 
nance "; "He has a very large, cultish following." Buffett 

himself has called his management staff "magicians." Said 
Steve Forbes of Forbes magazine, talking to National Public 
Radio about Buffett, "He's not Moses, but they read what he 
says as if it were written on tablets. . .. Buffett's economic 
forecasts are more listened to, than Papal Encyclicals or the 
State of the Union message." In 1974, when stocks were at a 
low, Buffett told Forbes he felt "like a sex maniac in a harem," 
wanting to buy. 

On November 8, 1991, the Wall Street Journal trumpeted 
in a two-page spread on Buffett as "the Oracle of Omaha," 
that his "folksy image belies a killer instinct." 

Backing from Buffett's socialite wife, Susie, came early in 
the rise of Larry King. Susie Buffett was a volunteer at the 
credit union in its early days. According to the Lincoln Journal- 
Star of March 19, 1989, King "liked to tell the story of a 
woman coming to the credit union to see him and being told 
to return at 7:00 the next morning because he was so busy. 
The woman was Susie Buffett, wife of billionaire Warren Buf- 
fett, and she did come back to offer her help at the credit union." 

For years, it has been part of Larry King lore in Omaha, 
that the Buffetts hosted a tenth wedding anniversary party for 
him and Alice. James Traub's December 1991 Gentlemen's 
Quarterly article served as a platform for Warren Buffett to 
deny he had a role in that affair, and to insinuate that perhaps 
the party never happened: "In 1978, King asked Susan Buffett 



149 



THE FRANKLIN COVER UP 

if she would be willing to host his and Alice's tenth-anniversary 
party at her house Susan said yes, but her husband said no. " 

Paula Albert, a close researcher of the Franklin scandal who 
has interviewed several people who attended the anniversary 
party, commented that the Buffettffraub account was carefully 
worded. Buffett avoided an outright assertion that the party 
didn't take place, but "you'd be left with the thought that it 
never happened, if you didn't know anything." 

Buffett told Traub, "I knew that King was a phony It was 

like he had a big sign on his head that said, 'PHONY, PHONY, 
PHONY.' " These protestations prompt the question, why, if 
Buffett saw so clearly that Larry King was a fraud, he did not 
alert his friends at FirsTier, or the World-Herald. Buffett is a 
director emeritus of one of the institutions that merged to become 
FirsTier, and he served on the World-Herald board. 

Larry King returned favors, by hosting a fundraiser for Buf- 
fer's son Howard, when Howard ran for Douglas County com- 
missioner. Warren Buffett may have done some more private 
socializing with Larry King, if a former Omaha city employee 
is correct in his report, that when Larry King was crowned 
"Queen" at The Max gay bar, Warren Buffett was his escort. 
"This is what his cousin Barbara Webb told me," said the 
source. "She said the people, they were mad, because Larry 
brought his son and his wife there." 

The Wall Street Journal feature reported that Warren and 
Susan Buffett have lived apart for thirteen years, although they 
attend official functions together. Buffett shares his home with 
a companion named Astrid Menks, "alternating his time be- 
tween the two women." According to the Journal, Buffett 
met Menks in 1977, when Susie brought her home from the 
nightclub where Menks was a waitress-the French Cafe. 



Buffett and King shared an interest in Boys Town, which 
to many Americans evokes the 1938 movie starring Spencer 
Tracy as Father Flanagan, the priest with the heart of gold whose 
orphanage, Father Flanagan's Home for Boys, straightened out 



150 



THE OMAHA BUSINESS COMMUNITY 

many an errant youngster. Known today as Boys Town, it is 
an incorporated village on the west side of Omaha, with exten- 
sive land and plush facilities, and an endowment of $460 mil- 
lion. The orphanage is therefore a major power in the Omaha 
financial world. It has begun a $25 million nationwide expan- 
sion program, and will have youth care facilities in seventeen 
cities by 1992. The chairman of its finance committee is Union 
Pacific's Michael Walsh. 

In 1972, Warren Buffett executed a maneuver around Boys 
Town, which is not fully understood to this day. His own Sun 
newspaper ran a series of articles, that targeted Boys Town for 
having too large an endowment. The Sun wrote, "members of 
the board of directors of Father Flanagan's Boys' Home gener- 
ally seem little concerned that the institution has amassed a 
net worth of more than $200 million while going to the public 
twice a year with a plea of poverty." Of the cited $200 million, 
$175 million was the "liquid endowment." 

Editor and Publisher magazine reported on March 30, 1985, 
"The Sun papers in 1973 became the first weeklies to win the 
Pulitzer Prize for an expose of Boys Town. The story idea 
originated with Buffett, who also participated in its develop- 
ment and wrote a section of it." 

The articles prompted a major shake-up and purge of person- 
nel at Boys Town. Buffett is believed to play some significant 
role with the orphanage today, perhaps in his specialty-invest- 
ment advice. An inquiry with Boys Town was referred to the 
in-house attorney for the orphanage, who, in answer to the 
simple question, "What is Mr. Buffett's precise role with Boys 
Town?" spent 25 minutes in two phone calls, not quite denying, 
but also carefully never confirming, that Buffett had a role with 
the facility. At any rate, Buffett has not complained lately about 
the size of Boys Town's endowment, although it is much larger 
now than it was in 1973. 

Larry King was intimately involved with Boys Town. The 
institution came up repeatedly during the Legislature's Franklin 
investigation, and even earlier. 

Foster Care Review Board Executive Director Carol Stitt's 
July 1988 plea to Attorney General Robert Spire, for an investi- 



151 



THE FRANKLIN COVER UP 



gation of child abuse, included that youth care worker Kirstin 
Hallberg "told me about three youth at Boys Town who all 
reported inappropriate activities with Larry King of Omaha." 
On March 29, 1989, her colleague Burrell Williams told investi- 
gator Jerry Lowe, "that on several occasions in the past he had 
heard of kids transported from Boys Town and the north Omaha 
Girls' Club to functions allegedly linked to King." 

Boys Town youth care worker Julie Walters, when she inter- 
viewed the Patterson Webb girls in 1986, reported her findings 
about Larry King and Boys Town youth, to the orphanage's 
executive director, Father Val Peter. According to an FBI and 
Nebraska State Patrol interview with the girls' foster mother, 
Kathleen Sorenson, "Walters related Nelly's statements to Fa- 
ther Val Peter. . . . Val Peter then stated that Boys' Town would 
conduct its own discreet investigation into Nelly's statements." 
Peter apparently did nothing, as Carol Stitt informed the legisla- 
ture's Executive Board on December 19, 1988: "It has been 
brought to my attention that no such investigation ever took 
place." 

The FBIINSP brief on Sorenson's interview said: 

Sorenson stated that an unspecified time in the summer of 
1988, Julie Walters spoke to two prominent black males and 
one black female at Boys' Town confirming Nelly Webb's 
statements about Larry King. Sorenson could not recall the 
names of these individuals. The individuals were either em- 
ployees or associates of Boys' Town. These individuals told 
Walters not to ask questions about King "because it could 
be dangerous." 

King was highly visible on the Boys Town campus, because 
of his distinctive yellow Tojan car. On March 27, 1989, Jerry 
Lowe interviewed Julie Walters by phone: 

Julie indicated that she subsequently had a conversation with 
Val Peter regarding the yellow Tojan including discussions 
that several Boys' Town teachers, including those as having 
the last names Barksdale, Wilson, and Gary, had been seen 
driving the automobile. Julie indicated that when she brought 
the matter of the Tojan up to Father Peter, that he had 



152 



THE OMAHA BUSINESS COMMUNITY 

initially denied any knowledge of the automobile, however, 
later on indicated that it was his belief that Omaha people 
couldn't accept black male teachers at Boys' Town and 
blamed the information regarding the Boys' Town black 
male teachers driving the Tojan, on racism. 

At least one reported driver of the Tojan, John Barksdale, 
was closely associated with Larry King. Barksdale worked at 
the credit union, as well as at Boys Town, and had been tapped 
by King to head up a planned nationwide expansion, known 
as Franklin, U.S.A. 

In January 1988, Father Peter summoned Kirstin Hallberg. 
She submitted her notes on the discussion to Franklin investiga- 
tor Jerry Lowe: 

Father Peter called me (Hallberg) and expressed an interest 
in Loretta's case and said he felt that Boys' Town could 
offer her safe place to heal." When I commented that she 
probably wouldn't feel too safe if she saw "the yellow To- 
jan," he (Peter) said that he heard it had "been around" and 
then quickly changed the subject. 

Under pressure, Peter once again promised an investigation. 
Julie Walters recalled, in her March 27, 1989 phone conversa- 
tion with Lowe: 

Julie indicated that she later learned that Val Peter had given 
an individual by the name of Dave Shanahan, who is the 
Director of Admissions at Boys' Town, the responsibility 
of conducting, what Julie described, as a staff practice inves- 
tigation of the Tojan automobile and the accompanying refer- 
ences to Boys' Town personnel riding in it. Julie indicated 
that she was uncomfortable about Shanahan investigating 
this as she expressed the personal opinion that she does not 
trust Shanahan. Julie indicated that Shanahan was a white 
male in his early forties and a long time employee of Boys' 
Town and indicated if she had to describe Shanahan she 
would describe him as being an individual with a good ole 
boy mentality who was not interested in the truth as much 
as making sure that nothing of a negative nature involving 
Boys' Town came out of the investigation. 



153 



THE FRANKLIN COVER UP 



Walters was right-honest investigations of Larry King at 
Boys Town were quashed, as Franklin investigator Karen 
Ormiston found out when she interviewed former policeman 
Alan Kupres, on August 14, 1990. 

Mr. Kupres indicated that he had worked as a police officer 
for Boys Town for approximately three years. He stated that 
he had run the license plates on a vehicle which was regis- 
tered to Larry King several times, but that his superiors had 
directed him to "leave it alone." 

Alisha Owen, Paul Bonacci, and Nelly and Kimberly Webb 
all reported that King took boys from Boys Town for his 
pedophile activities. 

Omaha author Steve Bowman, who is preparing a book on 
the Franklin Credit Union for release in 1992, discovered as 
he interviewed Boys Town grads, that King's activities there 
were scarcely anomalous. "You would keep hearing the same 
thing, over and over again," Bowman said of the graduates, 
many of whom were homosexually involved with Larry King. 
"They would invariably say, 'I first discovered my homosexual- 
ity during counseling at Boys Town.' " 

The homosexual ambiance at the orphanage was featured 
in a novel, reported on in the August 27, 1989 World-Herald: 

An Omaha native said his new novel describing a youth's 
painful upbringing in a boys' home, including many homo- 
sexual encounters, is based on his eight years at Boys Town. 
Jimmy Cheshire, 44, of Yellow Springs, Ohio, said in an 
interview that "Home Boy" accurately depicts life as he saw 
it at Boys Town from 1955 to 1963 when he graduated as 

class valedictorian . Cheshire said homosexuality was 

"rampant" at Boys Town while he was there. "Everybody 
I knew was involved in it. After graduation, no one talks 
about it," he said. my opinion, one third of the Boys 
Town counselors were pedophiles. The only reason they 
were there was because kids were there. A lot of kids were 

seduced" . Cheshire said he did not find any adults at 

Boys Town who were "reliable." "There were some brutal 
people, some sick people," he said. "The children turned to 
each other' for support." 



154 



THE OMAHA BUSINESS COMMUNITY 

Father Val Peter said of Cheshire's book, "Boys Town would 
never condone any activity like that, nor do we have knowledge 
of it. I think sex sells, like the National Enquirer. " 

Boys Town officials deny with equal vehemence, that Larry 
King was associated with their facility in any way. Evidence 
from Franklin Credit Union files contradicts them. 

Working relations between the credit union and the orphan- 
age were in order as of a December 13, 1979 letter from 
Franklin employee Joel Rogers, one of King's homosexual 
lovers, to Boys Town Deputy Director for Development Wil- 
liam E. Ramsey: "Mr. King, Mr. Larson, and myself are appre- 
ciative of your visit yesterday, and look forward to working 
with you and the Father Flanagan Boys' Home." The extent 
of the planned collaboration is not known, but at one point 
Franklin was paid $15,000 to do a study on the relocation 
of people who lost their houses because of an expansion of 
Boys Town. 

Boys Town boys could get jobs at Franklin. King hired 
Brandt Thomas*, a 1984 graduate, to work at the credit union, 
according to a July 5, 1983 report from Doyle and Carol Gilles- 
pie, Boys Town family teachers. They also noted that "Brandt 
has moved in with his employer, Mr. King." Thomas was still 
under care of the school, and his change of residence was 
sanctioned by the highest official at Boys Town, then-Executive 
Director Father Hupp. His March 26 1983 letter to Brandt's 
mother, Lila Thomas*, was summarized by legislative Franklin 
committee researcher Jose J. Soto: "This letter from Father 
Hupp advises Brandt's mother of steps to take before Brandt 
moves in with Larry King." Hupp even attended the party King 
threw for Thomas, after the boy moved in. 

Two and a half years later, Nelly Webb was to tell Julie 
Walters, that King frequently took Thomas around with him 
to serve as a homosexual prostitute. 

By the time Franklin Credit Union met its fate, Boys Town 
had deposited, or planned to deposit, one million dollars in the 
credit union! 



155 



THE FRANKLIN COVER-UP 



If his liaison to Boys Town were insufficient for his purposes, 
Larry King had the Omaha Girls Club as a hunting ground. 
Victim-witnesses consistently said both institutions were 
tapped by King to find candidates for sexual abuse. In an April 
14, 1989 report, Jerry Lowe summarized what he heard from 
Loretta Smith: 

Loretta furthermore told Carmean that many of the people 
who were taking the [pornographic] photographs were lead- 
ers of the north Omaha Girls' Club and included prominent 
people who used code names. When I asked Loretta what 
the code names were she indicated simple names like Mary, 
Jane, etc. She had told Carmean that doctors and lawyers 
were involved and when 1 pressed her on this she indicated 
at one of the photographic sessions she saw some files and 
someone said something to her about one of the men working 
in chambers. 

Lowe wrote up, on May 8, 1989, observations from Nelly 
Webb: 

Relative to the North Omaha Girls' Club, Cornelia indicated 
that she had heard that a couple of girls had slept with men 
who were somehow connected with the Girls' Club .... 

A week later, he learned from Kathleen Sorenson, that Nelly 
and Kimberly 

talked about being at many parties at King's house on River 
Road and at another location. They were often taken to these 
parties at a moments notice. They said the parties were for 
very important people. 

Caradori's investigation showed that King's control of the 
Girls Club was a matter of public record, for anybody who 
bothered to look. Checking the incorporation papers at the 
Secretary of State's office, Caradori discovered that the Girls 
Club was incorporated in December 1973, with Larry King 
as its president, "to promote . . . the health, social, cultural, 

vocational and character development of girls " One of 

the three incorporators was Franklin officer Mary Jane Harvey, 



156 



THE OMAHA BUSINESS COMMUNITY 

indicted with King for embezzlement there, and named by 
children as one person who transported them for sexual abuse. 
Had such research been done by law enforcement at the 
time of the children's complaints, more could have been 
learned, about the "very important people" the girls saw party- 
ing with King. The stakes in keeping their identity under wraps 
were obviously very high. 



The Omaha corporations that bankrolled Larry King and 
Franklin are also the major sponsors of youth organizations in 
Nebraska, such as Boys Club, Girls Club, Boy Scouts, Boys 
Town, Uta Halee Home for Girls, and others. These corpora- 
tions donate millions of dollars per year to these organizations, 
as the annual reports of the recipients show. Many executives 
of these firms sit on the boards of the youth care facilities. 

The donation of so much money and time would seem to 
indicate a great concern for Nebraska's youth. Key members 
of the Omaha business community, however, did nothing to 
help and plenty to wreck the Franklin committee's investigation 
into the sexual abuse, ritual torture, and murder of children. 

Is it possible that some of these corporate leaders sit on the 
youth boards, for the same reason that Larry King founded the 
North Omaha Girls Club? Why, for instance, did the notorious 
pedophile Alan Baer join the board of the Boys Club? And 
after the extraordinary publicity over his pedophilia in 1989 
and 1990, and his indictment for pandering, how is it conceiv- 
able that in 1991 Baer was still on the board of Boys Club? 

Assume most corporate board members are not involved in 
child abuse. But judging by the behavior of the Omaha business 
community during the Franklin investigation, the ones who are 
guilty of such behavior enjoy toleration, or even protection, 
by the others. 



157 



THE FRANKLIN COVER-UP 



These are the 1987 and 1988 boards of directors of the 
two FirsTier institutions. FirsTier was the bank Larry King's 
pilfered $40 million passed through, without anybody batting 
an eye. 

FirsTier Financial, Inc. 

1987 
George P. Abel, Chairman of the Board, NEBCO, Inc. 
Charles W. Durham, Chairman of the Board, Durham 

Resources 
Perry E. Esping, Chairman of the Board, First Data 

Resources 
John C. Kenefick, Pres. (ret.), Union Pacific Railroad 
Walter Scott, Jr., Pres., Chairman of the Board, Peter 

Kiewit Sons 
William C. Smith, Pres., CEO, FirsTier Financial, Inc. 
Dale C. Tinstman, Chairman of the Board, Eaton, Tinst- 

man, Druhner 
Neal E. Tyner, Chairman of the Board, CEO, Ameritas 

Financial Services 
Milton E. Whitehead, Chairman of the Board, Whitehead 

Oil Co. 
Michael B. Yanney, Chairman of the Board, America 

First Corp. 

1988 additions 
Michael H. Walsh, Chairman of the Board, CEO, Union 

Pacific Railroad 
Robert H. Daugherty, Chairman of the Board, Valmont 

Industries 

FirsTier Bank, N.A., Omaha 

1987 
Alan Baer, President, Alan Baer & Associates 
Anne S. Batchelder, Secretary, U.S. Check Book Co. 
John G. Bookout, President, Woodmen of the World Life 

Insurance Co. 
Lawrence Comine, Jr., CEO, FirsTier Bank, Omaha 
Roy Dinsdale, President, Dinsdale Brothers 
Steven H. Durham, President, Durham Resources 
Philip B. Fletcher, Pres. and CEO, ConAgra Prepared Foods 



158 



THE OMAHA BUSINESS COMMUNITY 

John R. Maenner, President, Maenner Co. 

Martin A. Massengale, Chancellor, Univ. of Nebraska, 

Lincoln 
Lloyd H. Mattson, Chairman of the Board, Industrial Chem- 
ical Laboratories 
John D. Minton, V. Chair, Dep. CEO, Mutual of Omaha 
Thomas N. Moore, Exec. V.P., FirsTier Bank, Omaha 
David R. Parker, V.P., America First Corp. 
Kenneth D. Power, V.P. and CEO, Northwestern Bell 
A.J. Scribante, Chairman of the Board, ViTal Resources 
William C. Smith, Pres. and CEO, FirsTier Financial, Inc. 
Hugh L. Tinley, President Emeritus, Farmers National Co. 
William F. Welsh II, President and CEO, Valmont Indus- 
tries 

Directors Emeriti 
Edd H. Bailey, Pres. (ret.), Union Pacific Railroad 
Thomas C. Quinlan, Attorney 

V.J. Skutt, Chairman of the Board, Mutual of Omaha 
Robert H. Storz, Chairman of the Board, Storz Broadcast- 
ing Co. 

1990 addition 
Howard G. Buffett 

In 1981, Warren E. Buffett was on the board of the Omaha 
National Corporation, which merged with First National Bank 
of Lincoln in 1984, to become FirsTier. 



159 



OMAHA BUSINESS COMMUNITY 
SUPPORT FOR FRANKLIN 



Documents [rom Franklin Credit Union files the financial backing to 

Franklin and Larry King from the Omaha community. 

DEVE10P1ENT OffCCS JEPOSIT REPORT 



Th rough c the effocis of 1r Harold Andersen, deposits 
have Seen raided : j c <a 1 1 L n $ -$200,000 suite t,h& beginning of 
che year. 

Anticipated deposits Mr, Andersen i 3 wocntnj on total 
approximately $1,000,000 and are i>eing followed up at * h i s 
time. 

Other Development Office activities include ant [cipated 
deposits of over S100,000 v { t. h i n the next few months, and they 
are currently being followed up on. 



An undated report from Franklin's Development Office cited Harold Ander- 
sen' s fundraising for the credit union. 



March 28, 1931 



Mr. iAwrenoe King 

Executive Direct 

Consumer Service orgwlitttotii In*. 

rreoklJH Owwroiey Federal Credit ukioa 

2723 (torth 33rd Street 

Omaha, Nebraska 681U 

Sesr-lfars^! 

<XUT '?*sV\t*.i f friend., *rvdy &wiersen of tfy> WpjM-4« 
H*r4id> ft-- written y« it s^me ien-jtft- #w«B¥ttinfl 
ttti'p«4E Koi-fe" ysa. axe doing" with the Pra&kiin, 
8? »ag$e$'*«4- consideration <it gartici Ration by <?ur 
0r$»fii.z3tiati ana &•■ **«.er- fr*3 been studied by 
fejve appropriate Oej?art»en ts . 

■the **.Vt«r i? r*eaivin.? careful study r a^d we hop* 
ee s©n* «p with * decision, --rly next aorvth. W* 
wiii b. in tauofc wits y<=« *t thst; ****.> but; ***:■,- 
»?vile w-fw-fe to ocn9t?*tuIat« you end extend best- 
wi.fljvea - c^n^inued success, 

Witn ki^Aeet reyerde, 




A /efter to Larry King from V.l. Skutt. then chairman and CEO of Mutual 
of Omaha, referred to lobbying for Franklin bv Harold "Andy" Andersen. 



33-0 j«0 p«tiy ' 

Community Federal Credit Union ■■< $ww« 



See wee 



HenorvnduD : 

To: Ton, Joel, Kurt 

From: Kanager 

CONFIDENTIAL: 

R«! Kiewit Foundation 

I sfcteed to grant Franklin $100,OOQ. and to deposit 

The deposit will be in hopefully by the end of this veer . I need the cureenr 
interest ratal thlt ve C*a offer them, thue I alll seeking input from all of vou. 

The criteria for ehb 4tpoatt 1. eh«t the tacereit from the $100,000 will noc_ 
b* uaed fot adminiat. ration co.ta, dividends, or operation coats. That the tneen 
will be used for home (aprovetseat 1 flan 8 and housing rehabilitation loans only . 



In addition, a agreeMnc (contract) of Baits must be drawn up stating that t'ranklii 
will only ua. th« *Cfw4 iaterewt for thew. mentioned purposes. I believe ve may 
need an attorney on thii polo;* 



: want anyone to diacu88 this grant: we ffiyet keep this confiden 
of the possibility that ve can receive further funding later. 



PROFIT, NOT C AITY, BUT FOA SEAVICE 



Larry King wrote this memo to his staff about funds forthcoming from the 
Kiewit Foundation, associated with the Peter Kiewit and Sons construction 
firm. 



* '**£%?& 



UNION PACIFIcvFOUNDATION i0l $ ?->* 



^A 



^vvt^^A 



May 27. 1980 



Mr. Lawrence E. King. Jr. 

Manager 

MT. Donald Glen Furlow 

Grants and Development Officer 

Consumer Services Organization, Inc. 

3231 Decatur Street 

Omaha, Nebraska 68 1 1 1 

Dear Mr. King and Mr. Furlow: 

I am very pleased to formally advise you that the 
Board of Trustees of Union Pacific Foundation has approved a 
grant in the amount of $2,500 to the Consumer Services Organ- 
ization i Inc. for 1980, which represents the second install- 
ment of a grant of $12,500, payable in five equal installments 
in 1979-83, inclusive, to assist your organization in helping 
individuals with consumer related problems. 

Payment of this grant is scheduled to be made in 
lune. I would appreciate receiving a status report on this 
project as the year progresses. 

This grant is made upon the recommendation of offi- 
cials of Union Pacific Railroad Company, which is an operating 
company of Union Pacific Corporation. 



Sincerely, 



In /980. the Union Pacific Foundation informed Larry King of latest 
grant. A handwritten note at the top a Franklin employee to expedite 

the transaction. 



PePOSJCT UP0/9T-& 




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V. J- S/CoTT • /tit/ri/<ti »* 0*tA»r9 






f 2.S,t>VB 


*&0 any 






2*5, am? 


PHZt-i-Tfs tCTirA/en, four *i>n.. S0*>< 






So, oeo 


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According to /98/ memo from Franklin Credit Union files, Town, 

the famous orphanage, planned to deposit $1 million with Franklin. 
Town officials maintained that they had no connections with Larry King or 
Franklin. 



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ual lover of from a Bovs 



Franklin staffer and a homosex- 
official. 



CHAPTER 13 



THE WASHINGTON 
CONNECTION 



In December 1990, Senator Schmit recalled an incident from 
almost exactly two years earlier, before the Franklin committee 
was officially established. "It was rather strange," Schmit said, 
"the first day that I decided to introduce the resolution [for a 
legislative investigation], while the resolution was being 
drafted, I was cautioned by an unknown person by telephone, 
that I was advised not to pursue the investigation, because it 
would lead, I was told, to the highest levels of the Republican 
Party. And I responded, that the investigation would go where 
it went." 

Hard as the Omaha business community worked to distance 
itself from Larry King, there were even more strenuous efforts 
to insulate from the scandal anybody of national stature, with 
whom King had consorted. There was a lot to hide. 

In the Republican Party, King had a meteoric rise. He sang 
the Star-Spangled Banner at a National Black Republican Coun- 
cil event in 1982, where President and Mrs. Reagan were guests 
of honor. By 1984, it was the GOP's national convention that 
heard the national anthem from Larry King. There in Dallas, 
he hosted his extravagant party at Southfork Ranch, where I 
saw Maureen Reagan draped over King all evening like a big 
blanket. In 1988, at the Republican national convention in New 
Orleans, King sang again. He made a ten-minute "get-out-the- 
vote" video on behalf of Bush, for the 1988 campaign. 

The Omaha Star, newspaper of the city's black community, 
chronicled the rise in politics of Larry King. In his "Political 
Viewpoint" column of November 24, 1983, Ernest E. Bryant 



164 



THE WASHINGTON CONNECTION 

explained why King was unable to stand for re-election as 
chairman of the Nebraska Frederick Douglass Republican 
Council. 

Chairman King has accepted a position in the Reagan/Bush 
re-election campaign. He was appointed by National Black 
Republican Council Chairperson LeGree Daniels, who was 
named Chairperson of the Black Voters for the Campaign, 
in the Reagan/Bush '84 re-election bid. She has appointed 
King as coordinator of all the activities to bring out the Black 
vote. In brief this means that Mr. King will be responsible for 
meeting with the Party officials and the Black Republican 
leadership within each of the 17 targeted states. He will 
coordinate the efforts of these groups in support of the 

Reagan/Bush campaign Mr. King will also be traveling 

to the 17 targeted states when President Reagan does, to 
draw state party officials and Black Republican leadership 
together. 

Mr. King has also accepted the Chairmanship of the 
National Black Republican Council, Development Commit- 
tee for Fund Raising. 

Stepping inside the Franklin Credit Union, visitors were 
greeted by a four foot high picture of Larry King with Ron- 
ald Reagan. 

King's backers in the Omaha business community have 
plenty of ties to Washington, since Nebraska has been a favorite 
stomping ground for the national GOP. Although its population 
is just 1.6 million, the concentration of corporate wealth in the 
state makes it a priority for fundraising, with the attendant 
political and business back-and-forth. Peter Kiewit and Sons, 
for instance, contributed $100,000 to elect Richard Nixon, and 
later got the contract to build the subway system for the nation's 
capital. During the 1990 gubernatorial campaign, George Bush 
called Republican Kay Orr's reelection bid the most important 
race in the country; Bush visited Nebraska three times. (Orr 
lost.) 

On the morning of February 7, 1990, Larry King was making 
plans to attend one of those fundraising events in Omaha, 
featuring President George Bush. Out of the blue, U.S. Magis- 



165 



THE FRANKLIN COVER-UP 



trate Richard Kopf suddenly ordered King to be taken to a 
federal psychiatric facility in Springfield, Missouri, for "tests." 

Senator Chambers reacted to King's abrupt disappearance, 
as reported in the March 17, 1990 Wo rid- He raid: "State Senator 
Ernie Chambers said Friday that he believes that Franklin Com- 
munity Federal Credit Union head Lawrence E. King was 
'whisked' out of Omaha 'in a hasty, almost clandestine way' 
last month so he could not attend an event at which President 
Bush spoke. Chambers said that a trial of King could prove 
embarrassing to 'powerful people at the national level.' " 

The notes of Franklin investigator Gary Caradori confirm 
the senator's suspicions. On February 19, 1990, twelve days 
after King was whisked off, Caradori wrote: 

I was informed that LK was sent to Missouri for observation 
because the Secret Service had discovered that he had pur- 
chased a ticket to Governor Orr's breakfast with President 
Bush. LK was approached at a local floral shop, and was 
rushed to court by the Secret Service, or at their demand. 
This was so sudden, that LK's attorneys were unaware of 
what was going on. 

The word in Omaha was that King, indicted in federal court 
May 19, 1989 on forty counts of financial wrongdoing, was 
planning to ask Bush for help. 



When Larry King traveled the political circuit, he evidently 
had two agendas. To the public, he was the rising GOP star 
with the resonant baritone voice. Something else went on be- 
hind closed doors. 

At the Dallas convention in 1984, King threw his splashy 
party at Southfork Ranch, remembered by me and many other 
delegates as an unparalleled extravaganza. According to several 
victim- witnesses, he also arranged some private events during 
the convention. They recall being flown to Dallas, to be sexually 
used by convention-goers. Gary Caradori mapped the recollec- 



166 



THE WASHINGTON CONNECTION 

tions of the Webb foster children, in his notes of February 
28, 1990: 

During this visit [the children's aunt] Marcy informed [social 
worker] Joanie that [the youngest Patterson Webb sister] 
Kendra had told her she had been transported around the 
country several times, she thought to Texas and Louisiana. 
Marcy remembered Texas in particular, and a Republican 
Convention because one of the children, possibly Kendra, 
had a book of matches from Texas and that is how the 
children had known where they were at. Joanie stated she 
remembered that the children had been exploited sexually 
in Texas, and she indicated that it was [the] feeling this 
activity had been occurring for several years. 

I was later to learn from Paul Bonacci, that he was also at 
the famed Southfork party. He described it for me in exact 
detail, some seven years after the party took place. He had 
been there for the purpose of providing sexual favors for people 
Larry King wanted to accommodate, satisfy, or compromise. 
Paul said he was one of a troop of teenaged boys and girls, 
whom King had shipped to Dallas for his purposes. 

I have talked to Paul repeatedly about this party. I have 
listened to his description. Only by having been there, could 
someone describe the setting the way Paul did to me. Because 
I was there myself for the party, I am certain that Paul Bonacci 
was there and did not invent his story or his description of 
the party. 

This was, it happens, just one of Paul's leads into matters 
surrounding Larry King and Franklin that I could personally 
check out and know the boy was telling the truth. Not because 
somebody told me he was telling the truth. Not because some- 
body said he passed a lie detector test on the subject. But 
because I was there and saw a part of it, and saw the exact 
same things this boy did. 

Again in 1988, attendance at Larry King's party was virtually 
mandatory for any true Nebraska Republican attending the 
Republican National Convention, held this time in New 
Orleans. Most of the Nebraska delegation was transported to 
the party by bus. The theme of the festivities was Mardi Gras. 



167 



THE FRANKLIN COVER-UP 



With me was my 12-year-old daughter, Jennifer, who met a 
black youth named Prince at the party. 

"Look, Daddy, that boy's name is 'Prince King.' Isn't that 
a funny name?" Jenny said to me, as she looked at the name 
tag of the son of the man sponsoring the party, Larry King. 
Everybody had a name tag pinned on, immediately upon enter- 
ing the party. 

I am sure that, again, Larry King had youth at that party, 
whose sexual favors were used as gifts for this or that politician 
or businessman. 

King's parties were designed to bring in everybody, from 
the innocent to the top-ranking businessmen and politicians. I 
personally attended the two largest parties he ever threw, as 
did many Republican officials. As a guest at the party, you 
would not know from the outer glitter, what sordid activity 
was going on behind the scenes. I am sure that was the character 
of many of Larry King's parties, particularly the political 
events. Outwardly, they had the appearance oflegitimacy, with 
prominent people in attendance, from mayors to presidents, 
from businessmen to congressmen. 

So, when people say to me, "Well, I was at one of Larry 
King's parties and I did not see any of this sex or drug or 
pedophilia stuff," I understand that they may be speaking with 
honesty and accuracy. As to what really went on, I believe 
they are wrong. 



Larry King spent his money far and wide, not just in Ne- 
braska. One of the places he rented was a house for $5,000 a 
month, off Embassy Row in Washington, D.C., which formerly 
housed the Brazilian legation to the Organization of Ameri- 
can States. 

"When Larry entertained, it was a hot ticket," said a public 
relations man King hired, quoted by Rick Hornung and Michael 
Casey, in the February 28, 1989 Village Voice. "Virtually every 
high-ranking black member of the Reagan Administration had 
been out to lunch, over for drinks, or at a dinner party. The 



168 



THE WASHINGTON CONNECTION 

food and drink were first rate, as was the mix of people- 
black, white, Republican, Democrat, young, old." For King, 
the emphasis was on the young. 

King acquired contacts in Washington's homosexual prosti- 
tution scene, one of whom was the late Craig Spence. A lobbyist 
and political operative, Spence maintained a call boy ring that 
catered to the political elite and, unlike most D.C. call boy 
rings, offered children to its clients. 

Spence's activities made banner headlines in the Washington 
Times on June 29, 1989: "Homosexual prostitution inquiry 
ensnares VIPs with Reagan, Bush." Spence's access was so 
good, that he could arrange nighttime tours of the White House 
for his clients. The Times added on August 9, 1989, that Spence 
"hinted the tours were arranged by 'top level' persons, including 
Donald Gregg, national security advisor to Vice President Bush . 
..." Spence, according to friends, was also carrying out homo- 
sexual blackmail operations for the CIA. 

According to a Washington, D.C. investigative journalist 
who researched the Spence ring, "The way we discovered Larry 
King and this Nebraska-based call boy ring, was by looking 
through the credit card chits of Spence's ring, where we found 
King's name." Another investigator, with personal knowledge 
of the call-boy rings operating in Washington, put it this way: 
King and Craig Spence were business partners. Look 
at two companies, 'Dream Boys' and 'Man to Man', both of 
which operated under another service, 'Bodies by God.' " 



When Craig Spence turned up dead-a suicide, police were 
quick to say-in a Boston hotel room, in November 1989, it 
was the latest in the long string of deaths of persons linked to 
Iran-Contra covert operations and funding. 

There is evidence that Larry King had Washington business 
in that area as well. "In the 6 ) 2 months since federal authorities 
closed Franklin, rumors have persisted that money from the 
credit union somehow found its way to the Nicaraguan contra 
rebels," said a World-Herald article on May 21, 1989. 



169 



THE FRANKLIN COVER UP 



The first World-Herald reporter on the Franklin case, James 
Allen Flanery, apparently found more than rumors about the 
money-laundering. In late 1988, Flanery called Carol Stitt to 
discuss what he had learned. Their conversation is related in 
a February 21, 1989 report by Jerry Lowe: 

Carol's notes also have a reference to Larry King running 
guns and money into Nicaragua. . . . Carol's notes on Dec. 
21, 1988 reflect that she talked with Flanery and in addition 
to the Nicaraguan info he was also now talking about CIA 
involvement and provided info that yesterday (Dec. 20) the 

FBI quit cooperating with him Carol's notes next jump 

to Feb. 6, 1989, where she talked on the phone with Flanery 
and Flanery told her that the appropriate people didn't want 
to believe any of this and who was ever going to prosecute 
it. Apparently Flanery told Carol he was close to resigning 
and the reasons he didn't think anyone wanted to do anything 
was because of the possibility of a White House connection, 
the connections to a number of big people, and the fact that 
the investigators wanted badly to confine this all to the 
money. Also many white people made Larry King, he did 
not happen on his own. 

Apparently Flanery told Carol he was uncomfortable on 
the phone, his editor was distressed, and things he had written 
were continually edited, he wanted to get his by-line off the 

article printed the 9th among other things Flanery also 

expressed concern to Carol that if he didn't get off this story 
he worried about being compromised. 

Soon Flanery was off the Franklin case, which continued 
for months to be the major news lead in Nebraska, and went 
to the University of Kansas on sabbatical. When he returned 
a year later, Flanery no longer wrote about Franklin. 



Squelching interest in an Iran-Contra connection to Franklin 
was also a topic of the hour, in that phone call I received from 
National Credit Union Administration official Fenner, back in 
the early months ofthe legislative Franklin probe. "Why would 



170 



THE WASHINGTON CONNECTION 

the head of the NC VA be wanting to talk to me?" I wondered 
out loud, when my secretary said that Fenner was on the line. 

The man on the other end of the phone said he knew I was 
a close friend of former CIA head Bill Colby, and that I also 
was Senator Loran Schmit's personal attorney. He quickly 
came to his point. 

"I know there are a lot of rumors, that Franklin was being 
used as a front for laundering money for the Contras and that 
a lot of the money that is missing from Franklin actually went 
to finance the Contras." 

I acknowledged that I had heard such talk, and told him, "I 
myself am one of those who wonder, if that is not a real 
possibility, in light of the way things have been shaking out 
on the Contra scandal." 

Fenner then gave me a flood of details on the secret Franklin 
accounts, and where the missing money supposedly went. No 
destinations linked with Iran-Contra were mentioned. 

"I know you recommended that Bill Colby be hired to inves- 
tigate this matter," Fenner continued, "and that the committee 
rejected Colby. That was a big mistake. It is going to take 
someone of his ability and integrity, contacts and stature, to 
get to the bottom of this." 

"So tell me," I said, "just what is at the bottom of it? If it 
is not laundered money involved in the Iran-Contra scandal, 
what the blazes is it? And how could Larry King get away 
with this, without you or somebody else knowing what was 
going on? Looks to me as if he had to have one heck of a lot 
of powerful political protection at the highest levels." 

"Homosexuals," Fenner said, "Franklin financed the biggest 
group of homosexuals any state has ever seen. A lot of awfully 
powerful and prominent personalities involved. But probably 
not anything you can do anything about. As far as politicians 
go, it does not seem to go to the very top, as some of the 
rumors suggested." 

"Are you telling me that the Franklin theft and scandal was 
just one big queer party, with a bunch of rich folk who do not 
want their involvement known?" I asked. 

"Yes," replied Fenner, "and I am not sure we know who all 



171 



THE FRANKLIN COVER UP 



was involved. Larry King did very clearly have contacts at the 
highest levels, that made it possible for him to prevent proper 
audits. Otherwise, this could never have happened. But the 
money was not used for Iran-Contra purposes." 

Reviewing that conversation from the vantage point of nearly 
three years later, I think that on both counts-where the money 
went, and the involvement of high-level political figures-I 
was hearing something short of the real story from Fenner, to 
put it charitably. 



Independent investigations confirm that there are ample 
grounds to question the conclusion of the NCUA-hired firm, 
FAG, that the nearly $40 million gone from the credit union 
was all squandered by Larry King on limousines, flowers, gold 
watches for his lovers, and the like. 

Former political associates of King, sources on Capitol Hill, 
and intelligence specialists suggest that Larry King was one 
of dozens of owners and directors of savings and loans and 
other financial institutions, used by the CIA to help finance 
covert operations. From their information, a picture takes shape. 

S&L managers, allegedly including King, would secretly 
lend CIA operatives bundles of depositors' money, supposedly 
on a 30-day basis. In some instances, hundreds of thousands 
and even millions of these dollars would be flown out of the 
United States, to destinations such as Switzerland and the 
Bahamas. The money would be invested for profit in short- 
term high-yield financial instruments or other overseas hot- 
money schemes. Before federal auditors could notice any 
money missing, it would be returned. Some of the profit would 
be used to payoff the cooperating financial officer and other 
intermediaries. The rest was funneled into slush funds for 
covert operations. 

But the CIA would not always return the money. In 1990, 
a U.S. congressional committee was forced to investigate alle- 
gations that the CIA's financial machinations had been a factor 
in the collapse of several S&Ls. In an explosive series of 



172 



THE WASHINGTON CONNECTION 

articles in the Houston Post, investigative reporter Pete Brewton 
wrote that during "an eight month investigation into the role 
of fraud in the nation's savings and loan crisis, the Post has 
found evidence suggesting a possible link between the Central 
Intelligence Agency and organized crime in the failure of at 
least 22 thrifts, including 16 in Texas." 

One of the S&Ls named by Brewton was the Denver-based 
Silverado Savings & Loan, on whose board sat Neil Bush, son 
of the president. Sources have alleged that Silverado and Larry 
King's Franklin Credit Union had financial dealings with one 
another, but no independent confirmation has been obtained. 

U.S. House of Representatives Banking Committee hearings 
on the Franklin Credit Union, held in 1989, did place Larry 
King in the right locations for covert operations. They estab- 
lished that during the 1980s, King traveled several times to 
Jamaica, where Lt. Col. Oliver North and other Iran-Contra 
principals transacted a lot of banking. They heard testimony 
that Franklin's chief accountant, Tom Harvey, together with his 
mother Mary Jane Harvey, made several trips to Switzerland, 
in the time period millions of dollars disappeared from the 
credit union. 

In a memo dated June 18, 1989, Jerry Lowe noted that Larry 
King often received phone calls from Switzerland, that the staff 
at Franklin Credit Union had heard that King took money to 
Jamaica, and that Tom Harvey took money abroad, on numer- 
ous trips to Spain. 



Direct ties of Larry King to persons and institutions active 
in Iran-Contra are a matter of public record. In 1987, according 
to the World-Herald, King donated $25,350 to Citizens for 
America, a group that sponsored speaking tours for Oliver 
North and Contra leaders. CFA was a key public relations 
group for Iran-Contra; King was a founding member and one 
of its largest contributors. 

According to his May 22, 1989 interview with Omaha radio 
station KKAR, King was trying to bring North to Nebraska. 



173 



THE FRANKLIN COVER-UP 

A former security guard for King has sworn that he saw North 
attend at least one of King's parties, a party at which children 
were also present. Since he was stationed outside, he has no 
knowledge of what might have happened inside. "I just thought 
it seemed kind of curious, the whole set-up," he said. 

The head of CFA, David Carmen, was a partner in Carmen, 
Carmen and Hugel, the public relations firm hired by Larry 
King to help set up one of his other projects, the Council for 
Minority Americans. It is alleged that Carmen, Carmen and 
Hugel was one of King's direct links to the CIA. 

Another of the PR firm's partners was Max Hugel, formerly 
deputy director in charge of covert operations, under the late 
William Casey at the CIA. Hugel earned the post for services 
rendered to the 1980 Reagan-Bush campaign. Larry King met 
Hugel back then, since one of Hugel's responsibilities for the 
campaign committee was out-reach and liaison work with mi- 
nority groups. Brought to the agency by Casey in 1981, Hugel 
lasted only a few months at the CIA and was forced out under 
a cloud of scandal. 

King had a third friend at Carmen, Carmen and Hugel- 
Ambassador Gerald Carmen, the father of David. "What was 
Larry King doing with Ambassador Carmen?" reflected a 
Washington intelligence specialist, "It was the diplomatic 
pouches . Larry had even been lobbying for his appoint- 
ment as an overseas ambassador." According to a Washington 
Times report of December 15, 1988, King did seek an ambassa- 
dorial apointment. One source specified that he wanted to repre- 
sent the United States in Jamaica, where his wife, Alice, 
was born. 

During the height of Iran-Contra activities, 1984-86, Ambas- 
sador Carmen was in the right place to have served as bag man. 
He was U.S. Ambassador to the United Nations in Geneva, Swit- 
zerland from 1984 through August 1986. The United States am- 
bassador to Switzerland in that period was Faith Whittlesey, who 
was depositioned by the congressional committee investigating 
Iran-Contra. Oliver North's multiple secret bank accounts were 
located at Credit Suisse. When Carmen left the diplomatic ser- 
vice in 1986, Carmen, Carmen and Hugel was and remained 



174 



THE WASHINGTON CONNECTION 

deeply involved in Nicaragua. According to the intelligence 
newsletter Unclassified (December 1990-January 1991), "the 
Carmen group under a National Endowment for Democracy con- 
tract, handled the U.S. activities of the Violeta Chamorro cam- 
paign in the Nicaraguan elections." 

If King was involved with CIA money laundering, that jibes 
with a report from a member of Concerned Parents: "I heard 
from two different black people in North Omaha that King 
used to send limousines down to Offutt Air Base [home of the 
Strategic Air Command] to pick up CIA personnel for parties." 

The sometimes expansive Larry King used to talk fondly 
about his friends. In a Sept. 7, 1988, interview with the Metro- 
politan King said, "I know some of the people I admire aren't 
very popular. Ed Meese. The late Bill Casey of the CIA. And 
I love former Chief Justice Burger. Those are the people I 
really like to talk to. Bill Casey.... I just thought so very 
highly of him." 



Larry King adored Bill Casey, but what about one of Casey's 
predecessors at Central Intelligence-George Bush? Ever since 
July 23, 1989, when the lead editorial in the World-Herald 
said that "one child ... is said to believe that she saw George 
Bush at one of King's parties," King's connection with Bush 
has been a frequently asked question about the Franklin case. 
Anxiety on this account has run especially high in Omaha's 
black community, where in December 1990, one young lady 
stood up at a public meeting and proclaimed, "I think George 
Bush is involved in this child abuse case, and that is why all 
these people have been dying." 

Inside investigators of Franklin, and the Webb case before 
it, know that Bush's name came up at the very beginning, 
and it came up more than once. The July 1989 World-Herald 
column, in an attempt to discredit this and other victim-witness 
testimony, attributed the mention of Bush to a person "under 
psychiatric care," meaning Loretta Smith. In reality, the report 
was from Nelly Patterson Webb. 



175 



THE FRANKLIN COVER UP 



Nelly first brought up Bush in 1986, when she told Julie 
Walters about the sex parties she was flown to in Washington 
and Chicago. She saw Bush at two of these parties, she said, 
one in each city. 

Nelly also told Walters that one frequent party-goer with 
King was a boy named "Brent," the one who was "flown to 
another city somewhere" after a falling out with King. Walters 
did not have the resources to cross-check this information with 
the life of Brandt Thomas, the Boys Town resident who had 
moved in with Larry King. Franklin credit union files contained 
a letter signed by King, in his capacity as Youth Affairs Com- 
mittee advisor for the National Black Republican Council, list- 
ing Thomas as one of two national contact people for NBRC 
campus chapters. 

Three years later, with an investigation of abuse by King 
and the Webbs finally under way, Nelly was interviewed again. 
Speaking to Franklin committee detective Jerry Lowe, she re- 
peated her account of the Chicago party, and said that Bush 
and the two men he arrived with appeared to have left the 
affair with a young black man she called "Brandt." 

Of course, as I have made clear, mere attendance by a 
politician, be he the president or any other office-holder, at a 
Larry King party does not mean that person knew of or was 
involved in Larry King's sordid activities. Almost every top 
Nebraska Republican, including myself, attended the two 
largest parties King ever hosted, the ones at the Republican 
national conventions in 1984 and 1988. 

Bush's name surfaced again in Lowe's May 1989 review 
of reports by Thomas Vlahoulis from the state attorney gener- 
al's office: 

Sorenson told Vlahoulis that both Kimberly and Nelly 
broughtup the name of George Bush and indicated that they 
had both met him 

On June 10, 1989, Lowe received a letter from a citizen: 

There is a psychologist in Omaha who used to work for 
the CIA. In response to a direct question by an Omaha 



176 



THE WASHINGTON CONNECTION 



psychiatrist regarding George Bush's private life, this psy- 
chologist reported hearing rumors when Bush was head of 
the CIA, that correspond directly with one of the inferences 
made by Nelly Webb, and commented to the psychiatrist, 
how do you investigate your boss?" 

Whether or not a Bush presence at King's parties were 
confirmed, he certainly backed key Nebraskans tied to King. 

In August 1990, Bush appointed Ronald Roskens of Ne- 
braska, to head the Agency for International Development 
(AID). Roskens had been fired the previous year as chancellor 
of the University of Nebraska, where Larry King was a member 
of his "chancellor's advisory committee." 

Gary Caradori's daily notes for Feb. 19, 1989 record: 

I was informed that Roskins [sic] was terminated by the 
state because of sexual activities reported to the Regents 
and verified by them. Mr. Roskins was reported to have had 
young men at his residence for sexual encounters. As part 
of the separation from the state, he had to move out of the 
state-owned house because of the liability to the state if 
some of this sexual behavior was "illegal." Upon Roskins 
vacating the house, he was provided a house by Joe Seacrist 
[sic] of the Lincoln Journal-Star. 

The leadership of AID is the kind of sensitive job- AID 
assignments have been used as a "cover" by CIA agents, for 
instance-for which appointees undergo a background check 
that would have to turn up what Caradori also heard. Neverthe- 
less, George Bush appointed Roskens. 

When Harold Andersen's reputation sagged in the fall of 
1989, due to his unconcealed association with Larry King, his 
friends at the Nebraska Society ofD.C. staged an awards dinner 
in Washington to polish his image. George Bush sent a testimo- 
nialletter in praise of the adviser to the U.S. State Department 
and occasional horseshoes-player at the White House. Bush 
wrote about Andersen and his wife: "These two outstanding 
individuals have spent countless hours serving the city of 
Omaha and the state of Nebraska. Throughout Harold Ande- 
rsen's career with the Omaha World-Herald, he has made that 



177 



THE FRANKLIN COVER UP 



fine paper an example of journalistic integrity. In addition, he 
has been a vigorous promoter of efforts to improve the quality 
of life in his community." 



Like George Bush, Harold Andersen moves in the upper 
circles of the U.S. intelligence community. The career of an- 
other Nebraskan, Robert Keith Gray, illuminates that milieu 
and why it would be so congenial to a person like Larry King. 

Gray is the chairman and CEO of Hill and Knowlton, one 
of the two biggest public relations firms in the world, with 
such blue-chip clients as AT&T, IBM, Xerox, and DuPont. 
CBS -TV's 60 Minutes has called Hill and Knowlton "by far, 
the biggest, most influential PR firm in Washington," adding 
that "critics accuse them of being an unelected shadow gov- 
ernment." 

Gray first came to Washington, D.C. during the Eisenhower 
Administration, as Ike's appointments secretary and then secre- 
tary of the cabinet. He went to Hill and Knowlton in 1961. 

Gray played a role in Ronald Reagan's 1976 presidential 
campaign and, in 1980, he was deputy director of communica- 
tions, reporting directly to Bill Casey. On the strength of his 
connections in the new administration, he left Hill and 
Knowlton to set up his own PR firm. Within a year, Gray and 
Company secured over $9 million in billings from a clientele 
including Warner Communications, NBC, GTE, Mutual of 
Omaha, the American Trucking Association, the American Iron 
and Steel Institute, and the governments of Canada and Turkey. 
In 1986, Hill and Knowlton bought out Gray and Co.; Gray 
became chairman and CEO of Hill and Knowlton. 

Said to be Harold Andersen's "closest friend in Washington," 
Gray is also reportedly a specialist in homosexual blackmail 
operations for the CIA. 

Gray's own sexual proclivities were the subject of an article 
in the July-August 1982 issue of The Deep Backgrounder, 
entitled "Reagan Inaugural Co-Chairman Powerful 'Closet Ho- 
mosexual'?" The Deep Backgrounder tabloid featured exposes 



178 



THE WASHINGTON CONNECTION 

of homosexual networks in Washington, D.C.; its contributing 
editor was former senior CIA official Victor Marchetti. 

During the Watergate era, Robert Keith Gray served on 
the board of Consultants International, founded by CIA agent 
Edwin Wilson. When Wilson and fellow agent Frank Terpil 
got caught running guns abroad, Gray tried to deny his connec- 
tion with Wilson. "Yet ten years before," according to Peter 
Maas' book Manhunt, "in atop secret Navy review of Wilson's 
intelligence career, Gray described Wilson as a person of 'un- 
qualified trust,' with whom he'd been in contact 'professionally 
two or three times a month' since 1963." 

Author Jim Hougan, in Secret Agenda, reported another 
aspect of Wilson's work for the CIA: 

According to fugitive ex-CIA officer Frank Terpil, CIA- 
directed sexual blackmailing operations were intensive in 
Washington at about the time of the Watergate scandal. One 
of those operations, Terpil claims, was run by his former 
partner, Ed Wilson. Wilson's base of operations for arrang- 
ing trysts for the politically powerful was, Terpil says, Ko- 
rean agent Tong Sun Park's George Town Club. In a letter 
to the author, Terpil explained that "Historically, one of 
Wilson's Agency jobs was to subvert members of both 

houses [of Congress] by any means necessary Certain 

people could be easily coerced by living out their sexual 

fantasy in the flesh A remembrance of these occasions 

[was] permanently recorded via selected cameras The 

technicians in charge of filming . . . [were] TSD [Technical 
Services Division of the CIA]. The unwitting porno stars 
advanced in their political careers, some of [whom] may 
still be in office." 

Gray's associate Wilson was apparently continuing the work 
of a reported collaborator of Gray from the 1950s-McCarthy 
committee counsel Roy Cohn, now dead of AIDs. According 
to the former head of the vice squad for one of America's 
biggest cities, "Conn's job was to run the little boys. Say you 
had an admiral, a general, a congressman, who did not want 
to go along with the program. Cohn's job was to set them up, 
then they would go along. Cohn told me that himself." 



179 



THE FRANKLIN COVER UP 



The first president of Tong Sun Park's George Town Club, 
where Wilson's sexual blackmail operations were reportedly 
run, was Robert Keith Gray. 

Gray maintained his intelligence connections during the 
Reagan Administration, according to an affidavit filed with the 
Southern District of Florida Court on December 12, 1986, by 
Attorney Daniel Sheehan for the Christie Institute. The affidavit 
states that when CIA chief Casey, national security adviser 
Robert McFarlane, and NSC staff member Lt. Col. Oliver North 
were devising a method to circumvent a congressional ban on 
arming the Contras, they turned to Gray and Company. 

Gray employee Rob Owen set up a private group to solicit 
funds for the Contras. Owen was called before Congress, to 
testify on how he delivered bags of cash to the Contras. 

In February 1989, Hill and Knowlton's Charles Perkins 
rushed to New York, for a fraction of the firm's usual fee, 
to help with public relations for Covenant House. The youth 
organization's director, Father Bruce Ritter, was alleged to 
have molested youth who took refuge with him. 

Lauded by the Reagan and Bush Administrations as a show- 
case for the privatization of social services, Covenant House 
had expanded into Guatemala as a gateway to South America. 
According to intelligence community sources, the purpose was 
procurement of children from South America for exploitation in 
a pedophile ring. The flagship Guatemalan mission of Covenant 
House was launched by a former business partner of Nicaraguan 
dictator Anastasio Somoza, Roberto Alejos Arzu, who had ties 
to the CIA, according to the Village Voice of Feb. 20, 1990. 
The Voice quoted Jean-Marie Simon, author of Guatemala: 
Eternal Spring, Eternal Tyranny: "It's like having Idi Amin 
on the board of Amnesty International." 

A top source of money for Covenant House has been Robert 
Macauley, founder of Americares, a service organization impli- 
cated in channeling funds to the Contras. A close friend of 
the Bush family since Connecticut, Andover and Yale days, 
Macauley has George Bush's brother Prescott on the 
Americares' board. Father Ritter was a vice president of 
Americares, at least until he had to resign from Covenant House 



180 



THE WASHINGTON CONNECTION 

in February 1989, and spent weekends at Macauley's estate in 
Connecticut, according to a former Covenant House employee. 

As in New York, also in Nebraska an institution that sheltered 
child abuse could count on protection from Washington. The 
attitude of federal agencies towards Larry King's Franklin 
Credit Union fits the mold. 

All the way back in 1984, a Franklin teller named Edward 
Hobbs tried to blow the whistle about the embezzlement of 
funds from the credit union. He addressed a memorandum to 
his employers, and traveled to Lincoln, the state capital, to 
brief state banking officials on its contents. National Credit 
Union Administration (NCUA) examiners saw Hobbs' memo- 
randum later that year. The memo covered evidence of embez- 
zlement, and information Hobbs had, that promotions at Frank- 
lin were based on doing homosexual favors for its manager, 
Larry King. 

The only visible result of his initiative was that Edward 
Hobbs lost his job. 

Between 1985 and 1988, Franklin skipped the annual audit, 
required by federal law for institutions of its type. The Legisla- 
ture's Franklin committee was told that when an audit was 
called for, King would pick up a special phone, call someone 
in Washington, and the audit would be called off. 

1 got the whiff of a Washington connection, when 1 first 
inquired about Franklin. As I explained it at a public meeting 
in December 1990, "I first noted something a little funny with 
the credit union when a good friend of mine and sometimes 
adversary on occasion, named Ernie Chambers, complained 
that the major financial institutions weren't making loans into 
the black community, that they were red-lining, in other words 
making sure the financing couldn't go into the black areas. As 
I began to investigate, I tried to find out information on . . . 
[Franklin] -what was it doing to get loans there? ... I found 
out that all the king's horses and all the king's men couldn't 
get information because, I was told, that was none of my 
business and if I didn't like it, to talk to the Feds and if you 
talk to the Feds you could find out nothing." 



181 



CHAPTER 14 



COVER-UP 

PHASE III: THE FBI 



In a deposition taken October 13, 1989, John Stevens Berry, 
counsel for the Franklin committee, was grilling OPD Chief 
Wadman about the lack of OPD follow-up on the child abuse 
when it was first reported. In exasperation, Wadman replied: 

The tough thing with this, Mr. Berry, is that we have the 
FBI who conducts an investigation and basically says the 
same things that we have said. If the FBI, are they now 
linked to this cover-up in some way? Should the Justice 
Department be investigated as somehow or another assisting 
in this "cover-up?" 

Wadman said it, but in this case it's true. The Justice Depart- 
ment, acting through the FBI and the U.S. Attorney's Office 
in Omaha, emerges from the record of the Franklin investiga- 
tions not so much as a party to the cover-up, but as its coordina- 
tor. Rigging grand juries, harrassment of witnesses, incitement 
to perjury and tampering with evidence-federal personnel 
were seen to apply all of those techniques in the Franklin case. 



In a case full of reported trips across state lines for sexual 
exploitation purposes, involving prominent persons from the 
national political parties, where was the Federal Bureau of 
Investigation? It was running interference, and worse. 

Maybe Senator Schmit and I got the message in its purest 
form, when we met with Omaha FBI head Nick O'Hara in his 



182 



COVER UP PHASE III: THE FBI 



office in early 1989. O'Hara, who kept Wadman's picture on 
his desk, threatened, "You f — with Bob Wadman, you f— 
with the FBI!" 

There was a hint of trouble from the Bureau already in the 
summer of 1988, as OPD Officer Irl Carmean recollected in a 
memo to Deputy Chief Charlie Parker, dated December 20, 
1988. A fellow officer had just reminded Carmean of a meeting 
back in July or August, where 

Lt. [Bill] Goodrich spoke of the Larry King investigation 
and stated that he (Goodrich) had been in contact with a 
federal agency that was also investigating King. To the best 
of Officer Berney's recollection, Lt. Goodrich said that the 
federal agency was concerned that our child pornography/ 
abuse investigation might hamper their investigation. Officer 
Berney told me that although he wasn't sure, it was either 
directly stated or he (Berney) got the impression that we 
were to either "slow down or back off in our investigation 
so as not to impede the federal case. 

In 1988 and 1989, according to testimony to the Legislature's 
Franklin committee, the FBI claimed to be interested in Franklin 
money issues, but not child abuse. Dennis Carlson ofthe Foster 
Care Review Board testified to the Franklin committee, citing 
state Assistant Attorney General William Howland, that U.S. 
Attorney Tom Thalken had said "that the federal authorities 

were investigating Mr. King But he said basically their 

investigation was confined to the money issues, and they were 
not specifically investigating allegations of child abuse." 

Howland's part-time investigator, Vlahoulis, told the Frank- 
lin committee that it was his impression the FBI had information 
on private charter flights, something Gary Caradori would con- 
firm in a dramatic way. 

Moreover, as advertised in a May 12, 1990 article in the 
World-Herald, the FBI had been looking at Franklin since 
1987, for over a year before it was closed! The FBI men could 
hardly have been unaware of the Franklin ambiance, not to 
mention the bedroom in the new addition, and the evidence 
shows that they were not. It was reported in the Lincoln Journal 



183 



THE FRANKLIN COVER-UP 



in December 1988, as summarized by Jerry Lowe for the Frank- 
lin committee, that "an ex-employee who is not identified said 
that when FCU shut down, FBI agents immediately began 
asking questions regarding child pornography, drugs and the 
lifestyle of Larry King." 

Caradori's notes of March 14, 1990 record that on the day 
of the federal agents' raid, he was told by a member of the 
accounting firm that was auditing Franklin, that 

a large amount of pornographic material was taken out of 
the credit union, including videos and photographs depicting 
sexual acts. I was told that if Friedrichs* or any of the other 
people working for the CPA firm that was contracted by the 
government would say anything, that they would automati- 
cally lose their jobs. 

That evidence was never made available to the Franklin 
committee, nor its existence publicly acknowledged by the FBI. 
All warrants concerning the raid were sealed by U.S. Magistrate 
Richard Kopf. 



The Douglas County grand jury proclaimed on July 23, 
1990, that the allegations and evidence of Franklin-linked child 
abuse were a "carefully crafted hoax." Its report implied that 
the perpetrators were Alisha Owen, journalist Michael Casey, 
and the late Gary Caradori. According to testimony of Alisha 
Owen and her parents before the Franklin committee, the FBI 
had this line already in March of 1990, before the grandjury 
even started sitting. 

Alisha testified to the Franklin committee on June 11, 1990, 
before promulgation of the grand jury report, that her former 
lawyer Pam Vuchetich had come to see her in the spring, 

giving a proposal from the FBI that if! recanted my story then 
nothing would happen to me, I could possibly get out of prison 
and no charges would ever be brought against me. Such as, if 
I recanted my story, they wouldn't charge me with perjury, 
they wouldn't charge me with lying, they would just drop the 



184 



COVER-UP PHASE III: THE FBI 



whole thing, they would write letters to the judge asking for 
my sentence reduction so I could get out of prison. And if- 
and in this deal I would have to say that Gary Caradori and 
Mike Casey came to me, they set this whole thing up, they told 
me what to say, we got scripts, we were promised monetary 
values. And I would be taken care of. 

On June 21, 1990, Donna and Alvin Owen told the Franklin 
committee about that incident. 

DONNA OWEN: My concern is that Pam came to us and said 
that the FBI wanted Alisha to say this, to drop it. 

SENATOR LYNCH: You testified that your husband was there? 

ALVIN OWEN: Sitting in the living room, I remember. 

SENATOR LYNCH: You heard her say that? ... Did she tell 
you who in the FBI made that deal, made that offer to her? 

DONNA OWEN: Mickey Mott. . . . 

SENATOR LYNCH: Was Mickey Mott-was there anybody 
else with this Mickey Mott? 

DONNA OWEN: He works closely with Rick Culver and 
John Pankonon. 

SENATOR LYNCH: Okay. Well, for the record, do you remem- 
ber the date at which time she told you about the FBI deal 
when your husband was present? 

DONNA OWEN: This would have been on Tuesday, I believe. 
If Tuesday is April 25, then it would have been Tuesday, 
April 25, 1990. It would have ail-that was brought up then, 
but it was also brought up earlier, in March. Because at that 
time, I called Senator Labedz and I said, do you realize that 
this is what is happening and I want to tell you this because 
I think when all is said and done it's not going to just be 
this man Mike Casey, they are going to say that Gary Cara- 
dori was in on it and that members of the legislative commit- 
tee were in on it. And she was very concerned and she 
immediately went to get Senator Schmit and I talked with 
him about it also. And that would have been in March. 

SENATOR SCHMIT: I recall that. 

185 



THE FRANKLIN COVER UP 



In order for the FBI to claim that all of the Franklin commit- 
tee's evidence was a hoax, they had to break one or more of 
the witnesses Caradori had taped. Troy Boner and Danny King 
recanted; what happened with Troy shows the hand of the FBI. 

On the evening of July 11, 1990, the day her husband crashed 
to his death, Sandie Caradori received several phone calls from 
Troy Boner. She wrote up her notes on the calls: 

I need to preface this writing by explaining that in the course 
of the Franklin Credit Union investigation, many calls were 
received at our home from Troy Boner. I was familiar with 
the individual's voice and can be 100% assured that I did, 
in fact, receive the telephone calls from him. 

In the early evening of Wednesday, July 11, 1990, several 
telephone calls were received at our home by an individual 
identifying himself as "Troy." Different individuals an- 
swered the telephone and took the message from him. I was 
either talking to other visitors at our home or in no shape 
to come to the telephone. In any event, if necessary I can 
supply names of the parties who can attest to the fact that 
a "Troy" called for me during that evening. 

Later in the evening, Troy again called and I was able 
to go the telephone. It should be noted that I did not initiate 
the call, nor did I know what, if anything, he wanted to 
speak to me about. 

The following is a synopsis of the conversation: 

sc: This is Sandie Caradori. . . . Troy, what do you want 
to say? 

TB: First, you have to be careful. 

sc: Troy, that is the least of my worries. How are you? 

TB: I am so sorry. I am so sorry. He shouldn't have died. 

sc: What are you saying Troy? What are you trying to tell 
me. 

TB: Gary wasn't lying. He didn't tell me what to say. What 
I told him was the truth. (He spoke rapidly as if fighting 



186 



COVER-UP PHASE III: THE FBI 



back tears.) They made me take it back. They threatened 
me. 

sc: Troy, you should tell someone Do you want me to 

call Senator Schmit? You need to come out with the truth 
once and for all. Troy, what has happened? 

TB: You don't understand, they threatened me. They made 
me take it back. I was so scared. 

(At this point I felt I needed someone else to hear this 
so I asked Troy to tell what he had just told me to our 
son, Sean.) 

sc: Troy, I want you to talk to Sean, Gary's lti-year old 
son. Please tell him, alright? 

TB: Yeah, sure. 

SEAN: Yeah, man what do you want? 

I, along with the ten to 15 other people in our kitchen/ 
family room heard Sean's portion of the conversation as 
follows: 

SEAN: Okay buddy, you need to do it for my Dad, man. 
Okay . . . Okay . . . 

I got back on the telephone and told him I would try to 
contact Senator Schmit or Karen [Ormiston). He said he'd 
be at [phone number) but only for a short time. He said he 
was going to be "on the move" or something to that effect. 
He further stated, "I'll go to anyone who'll listen. I'll go 
without my lawyer. I'm gonna come clean." 

He then asked if I would talk with his mother. She wanted 
to talk. I said, "Of course." 

Troy's mother's voice was familiar. She had called our 
house several times for Gary... , Troy's mother related 
the following: 

MRS. BONER: Mrs. Caradori, I am so sorry. I'm so sorry. 
This is such a tragedy. I knew something happened to Troy. 
He got so scared just before he changed his story. They 
were threatening him. I knew he shouldn't have backed 
away from the truth 

Troy then got back on the telephone and I repeatedly 
asked that he would promise me that he would come through 
for me, for Gary, and for A.J. He said, promise '" 



187 



THE FRANKLIN COVER-UP 



tomorrow . To anyone who will listen . . . the FBI, the 

news-anyone." 

The next day I did not hear anything on the television 
or the radio and I really felt that Troy had probably backed 
away. That evening he called me again. He said, "Sandie, 

I tried, I tried. I went to Mickey Mott and (FBI 

agents). They laughed at me. They said they spent too much 
time and money on this case now for me to change my 
story. I also went to Frank Brown [Channel 7 TV] but he 
said he didn't want to take a statement because of my Grand 
Jury testimony." 



The next day, Sandie Caradori arrived at the offices of her 
husband's firm for the first time since his death, to find two 
FBI agents already there, with a subpoena for all of Caracorp's 
records. Mrs. Caradori recalled: 

I was extremely upset because the timing certainly left much 
to be desired. I opened the closed door and noted two FBI 
agents, Karen Ormiston, and our security director, Joe Hebe- 
nstreit. They were all seated in the office. I said, "I don't 
think I need to introduce myself. What are you doing here? 
I can't believe this." 

The smaller individual stammered a bit and looked at 
Karen and said, "Who ... who is this?" "She's Gary's 
widow." He then halfway stood up and extended his hand 
as if to shake mine and expressed his/their sympathy. The 
whole ordeal was extremely unprofessional. He then looked 
over his shoulder at the other agent, gave him a smirk, and 
shook his head. He identified himself as Mickey Mott. . . . 
I then asked them directly whether Troy Boner had tried to 
speak with them on the previous day. Mr. Mott said, "I can't 
confirm or deny that." I indicated that I did deserve an 
answer. Mr. Mott then said, "Yeah, he came to the office but 
we can't waste our time with him. He has lost all credibility." 

Troy Boner did attempt to come clean. He went not only 
to the FBI office, but to Senator Schmit's-and then pretended 
he had not. The World-Herald reported July 27, 1990: 



188 



COVER-UP PHASE III: THE FBI 



State Senators Loran Schmit of Bellwood and Bernice 
Labedz of Omaha said Troy Boner told blatant lies when 
he said he did not come to Schmit's office last week and 
when he said he didn't recant what he told a Douglas County 

grand jury. Schmit said at least eight people were in 

his office last week when Boner, in essence, recanted his 
recantation and said that what he had originally told Caradori 
was the truth. 

Six of the eight appeared at a press conference Thursday, 
including four-Schmit, Sen. Labedz, Caradori associate 
R.I. Nebe and Jody Gittins, an attorney who works in 
Schmit's office-who said they heard Boner's comments 

directly The six at the press conference Thursday said 

Boner was in Schmit's office both July 16 and July 17, the 
day of Caradori's funeral. 

Under pressure, Boner reasserted that what he told Gary 
Caradori was not true. His new lawyer, Marc Delman, insisted 
that his client had lied to Caradori. A specialist in child abuse 
cases when he worked in the Douglas County Attorney's Office, 
Delman was now better known for defending pornographers. 
Since Boner was penniless, many people in Omaha wondered 
if Alan Baer or another patron had given him the money to 
hire Delman. 



On Sept. 25, 1990, a federal grand jury returned findings 
almost identical to those of the Douglas County jury: 

There is no credible evidence for us to believe that funds or 
individuals connected with the Franklin Community Federal 
Credit Union were involved in the sexual exploitation of 
minors, the interstate transportation of minors, the interstate 
transportation of minors for sexual purposes or the traffick- 
ing in controlled substances. 

All of the big shots named in the Caradori investigation 
were cleared: 

There is no credible evidence for us to believe that any 
prominent individuals in the Omaha community were in- 



189 



THE FRANKLIN COVER-UP 



volved in any ring of organized activity to sexually exploit 
minors, transport minors in interstate commerce for sexual 
purposes, or to traffic in controlled substances. 

Alisha Owen was indicted again, on eight counts of perjury. 

The FBI, as Boner said, had threatened Boner into recanting 
his videotaped statement, which enabled the Douglas jury to 
return its "carefully crafted hoax" verdict, and set the pattern 
for the federal grand jury. Federal officials in charge of the 
latter, in particular Assistant U.S. Attorney Thomas Thalken, 
attempted to terrorize Alisha Owen into recanting as well. 

In testimony to the Franklin committee on June 21, 1990, 
Owen told about her experience with the federal grand jury, 
in an exchange with committee counsel. 

BERRY: Now, I do not want to know what questions were 
asked and what answers you gave. But you told me earlier 
that your life hasn't been easy and the worst three days of 
your life were in front of the county grand jury. Was the 
federal grand jury a more pleasant experience of- 

OWEN: Well, now I have to clarify that statement. No 
longer-the worst three days of my life were not in front 
of the county grand jury but they were in front of the federal 
grand jury 

Imagine if you were woken up at 5:00 in the morning, 
told to take a shower and get dressed. You were not told 
where you were going. I mean, if sombody came to your 
home at 5:00, did not tell you where you were going, they 
had the authority to drag you out of bed. After you got 
dressed you were then taken outside your home and wrapped 
in chains and driven two hours to another city, all-you 
were still not told where you are going and what is actually 
happening. Officially you are not told. 

Then once you get to this other city, you're put into an 
actual cage. I mean, I have seen kennels look nicer than 
where I was held. And five minutes before 9:00, you are 
given a subpoena telling you that you have to testify at 9:00 
in front of a grand jury. Now, that-I mean that in itself is 
suspect. Okay. Especially if you are the witness. I might be 
able to understand it if you are the perpetrator 

I am in a room and it's a cage, okay, it's-it really is a 



190 



COVER UP PHASE III: THE FBI 



cage like a zoo cage. The whole front is just a cage. And 
there is a hallway and there is- there is an open door so I 
can hear what's going on in the hallway because it's just a 
cage, there is no sound barrier. I heard Mr. Thalken repeat- 
edly and repeatedly in a very disrespectful-what I consider 
dis-I wouldn't talk to anybody like that, disrespectful tone, 
saying things repeatedly, over and over, if she gets up there 
and she doesn't tell the truth I'm going to charge her with 
perjury. Over and over and over and over again. I have not 
heard the word perjury so many times in my entire life than 

that day He was saying this to my attorney, saying I'm 

going to put her on the stand and if she doesn't, you know, 
if she doesn't tell the truth I'm going to charge her with 
perjury. 

Alisha's attorney Henry Rosenthal confirmed her account: 

Well, I don't know Tom Thalken He came at me like 

a little grizzly bear And he had a finger about two inches 

from my nose and kept yelling about perjury. And I didn't 
even know what he was talking about. Over and over about 
this and that and this and that. I said, let me tell you, if you 
think you have got any evidence of perjury when she's done, 
please charge her, just please do that. And that's-every 

time there was a recess, yelling about perjury This was 

before the evidence even started. 

Long before Thalken's behavior in dealing with Owen, his 
name had surfaced in Gary Caradori's investigation, as an 
alleged pedophile who frequented adult book stores in Council 
Bluffs, Iowa. Moreover, a confidential informant told Caradori, 
that Thalken was key to the cover-up in progress. In a February 
22, 1990 report, Caradori transcribed an interview with this 
confidential informant. 

GC: Are the federal people still putting me down, have you 
heard? I mean they want me off this case. 

CI: Well, they don't want anybody to get too close to it. ... 

This thing is way bigger than Nebraska You get one of 

those dominoes to fall I think it could reach to the White 
House and back so fast. That's why it's just almost hopeless. 



191 



THE FRANKLIN COVER-UP 



GC: What have you heard that they're doing [sic] to do to 
try to squash this case? 

CI: Well, their ace in the hole is the assistant prosecutor. 

GC: Thalken. 

CI: Yeah. And the term was a year ago, finger in the dike. 



Rosenthal was Alisha' s second lawyer. He succeeded Pamela 
Vuchetich, who had conveyed to Alisha the FBI's offer of a 
deal, from Vuchetich's friend Mickey Mott. In her Franklin 
committee testimony of June 11, 1990, Owen reported another 
incident involving Vuchetich and the FBI, which appeared to 
be an attempt to craft some evidence of the "carefully 
crafted hoax": 

They had Troy call me in the beginning of March. He called 
me in the afternoon and I got on the phone. . .. Pam had 
told me that Troy had recanted his statement about Danny. 
She never told me he recanted his statement about me. And 
you know, maybe I was naive, maybe I was just dumb, but 
I never once thought he could do that because, I mean, I 
had all this evidence, you know, and I mean, I'm the one 
that-you know, that told them about Troy and others. It 
never dawned on me that he would ever do that, recant 
about Danny. 

So we-I got on the phone and I-one of the first things 
I asked him was, why are you doing this to Danny, he's one 
of your best friends, how could you do this, what are you 
doing? And he said, something, Alisha, I'm scared. And his 
voice-the FBI has this tape. His voice is just really scared. 

And I know Troy sleeps until 4:00 or 5:00 at night, so I 
started to think oh, my God, he's in Omaha for a week, it's 
3:00,2:30 in the afternoon, somebody must be at his house 
making him do this. And I thought this must be a taped 
phone conversation. I was-I was literally scared. I thought 
either they sat down a lot of money in front of him or else 
somebody has got a gun to his head making him say this. 



192 



COVER-UP PHASE III: THE FBI 

I mean, I never thought-it never dawned on me the FBI 
would be so, you know, devious as to try and do something 
like that. 

So I asked him, why are you doing this? And he-and 
he said, Alisha, I'm scared, I don't know what to do, tell 
me what to do. And then he asked me, quote, unquote, do 
you think we're going to get any money? And I-I stopped 
for a second and I said, I don't give a damn about any 
money, you know, just tell the truth. That's what I said, 
quote, unquote. Excuse my French. But I just-just tell the 
truth. He said, what should I do? And I said, just tell the 
truth. 

And he kept trying to make these leading statements, 
Alisha, what should I do? And that's when I realized at that 
point in time that whoever was listening was probably law 
enforcement, trying to do entrapping statements. . . . And 
after I got off the phone, I tried to get ahold of Pam. Well, 
Pam is sitting down in the FBI's office with them making 
that call. Tried to get hold of Pam, Pam is not around. So 
I was upset enough and I was worried enough that possibly 
somebody was sitting there with a gun that I called Gary. 
And I thought, okay, if anybody is going to be able to do 
anything or know anything, Gary will know or he'll be able 
to find out. 

I called Gary. And Gary said, Alisha, Troy is sitting down 
at the FBI's office right now. So okay, I knew that the FBI 

was the one that prompted him to that call So Gary told 

me that it was the FBI. And Gary said to me at that time, 
Alisha, maybe you should start wondering why your attorney 
is spending so much time with the FBI. 

Against Alisha Owen's specific instructions, she reported, 
Vuchetich turned over to the FBI a file that Alisha maintained 
on acquaintances from her past. Vuchetich had suggested she 
assemble this information. In it were the names of some people, 
like former boyfriends, who could be expected to be bitter 
toward her. 

Alisha Owen told the Franklin committee, that the FBI also 
directly advised her to tell a lie-to say that she had lied on 
the videotapes. 



193 



THE FRANKLIN COVER-UP 



SENATOR SCHMIT: In other words, they advised you to say 
that you had lied on the tapes? 

ALISHA OWEN: Uh-huh, 

SENATOR LABEDZ: The FBI? 

OWEN: The FBI had advised me that I should say that not 
everything on the tapes is true, just a blanket statement, and 
say not everything on the tapes is true, and that I should 
forget all about the tapes because they can come back to 
hurt me. 

SCHMIT: I want to interrupt there because that is almost an 
identical statement that we heard in the press made by Troy, 
that not everything on the tapes was true. 

OWEN: That's what they told me to say And there were 

times when they tried to get me to say that Gary Caradori 
was withholding evidence from them, there were times when 
they-they basically really rammed Gary into the ground. 

Caradori wrote in his daily notes of April 20, 1990: 

At approximately 1415, this writer received a telephone call 
from Alisha Owen. She talked about the FBI hinting to her 
that if she changed her story that they would insure that 
they would after" this writer and Mike Casey for "fabri- 
cating" an investigation. She informed me that she had not 
fabricated any part of any story and that she was sticking 
to the story she told me, and that she wished me well. For my 
own protection, I tape recorded the telephone conversation 
which lasted approximately 30 minutes. 

According to an associate of Caradori, Franklin committee 
counsel John Stevens Berry alerted Caradori that he should get 
a lawyer, since he would likely be indicted. 



Alisha was not the only witness the FBI was reported to 
have harrassed or told to lie. At a Franklin committee session 
on June 22, 1990, Senator Labedz related her discussion with 
former Franklin employee Noel Seltzer: 



194 



COVER-UP PHASE III: THE FBI 



One of the most important things that I thought he told me 
was the fact that when they first went into the investigation 
of Larry King, he was talked to by the FBI and he told them 
mostly everything that he told me about the sexual abuse 
and so forth. And then he said he was told by the FBI, we're 
going to advise you it's best for you that you keep your 
mouth shut. And I said, say that again, and he repeated it 
so I could write it down. 

Gary Caradori interviewed a victim-witness named Terry 
Muller*. In his daily report of April 20, 1990, Caradori wrote: 

Further this writer received a telephone call from Sue 
Tompkins*, sister of Terry Muller. Briefly, Sue told this 
writer that the FBI and a member of the State Patrol were 
harrassing her brother and trying to get him to talk about 
things that he just didn't know about. She stated that her 
brother is extremely scared. He wants to tell the truth, how- 
ever, he felt extremely uncomfortable with the FBI and State 
Patrol investigators. She stated that a Phillips and FBI Agent 
Coulter were very harsh with her brother. 

On May 4, 1990, Caradori added: 

Following this meeting, this writer placed a telephone call 
to Sue Tompkins, who is the sister of Terry Muller. She 
advised me that Terry had retained an attorney to protect 
him from the FBI. I told her that I wished him well and 
hoped that everything worked out for him. 

Caradori's investigative notes for February 19, 1990 record 
his talk with Joanie Gregory, a Department of Social Services 
social worker who screened families applying for foster care 
licenses: 

Approximately 2.5 years ago she was inspecting the home 
of Jarrett and Barbara Webb for a renewal of their license. 
She felt the environment was not right and wrote a letter to 
DSS in Lincoln. She received no response. After a couple 
of months, she wrote a letter to the Omaha Police Department 
regarding this same situation with the Webbs. She was then 
contacted by the FBI. In the meantime she had tried to do 
some research on her own, but evidently files were missing. 



195 



THE FRANKLIN COVER-UP 



To this writer's knowledge, a letter was not written to the 
FBI. The FBI informed Joanie Gregory that it would proba- 
bly be in her best interests if she "forgot this information." 

Caradori recorded in his notes for December 1, 1989: 

At approximately 4:00 PM Senator Schmit arrived at [com- 
mittee counsel] Steve Berry's office, during which time 
he advised me that within the last 48 hours the FBI were 
scrutinizing several of his businesses such as his gambling 
machines in southeastern Nebraska and other related matters. 

On his own bitter experience with the Bureau, Caradori 
commented to the Franklin committee, on June 22, 1990. 

CARADORI: I think the [Douglas Co.] grand jury is being 
misfed information. 

SEN. LYNCH: By who, can you tell? 

CARADORI: I think they are being misled by the influence 
of the State Patrol investigator and various people in the FBI. 

BERRY: Do you think the FBI and the State Patrol are deliber- 
ately misleading the grand jury? 

CARADORI: I do, but I can't-you know, I have nothing to 
base it on. You know, the people ... in law enforcement 
say, we checked every lead you got, every lead that you 
have and it's nothing. And it's like, you know, all the work 
that you have done is not worth a damn. . .. [T]he most 
frustrating thing in this whole case, and no sense dwelling 
on it, has been that you produce a work product, not every 
lead is going to be in gold but you produce a work product 
and then one of the aspects of your investigation is the State 
Patrol and right away it goes to them, goes to the FBI and- 
and then they just tear you apart. And yeah, it's been really 
frustrating 

SEN. LYNCH: So the impression that we talked about being 
left with the grand jury wasn't an impression that this com- 
mittee or witnesses that we had or any staff in addition to 
you, our counsel, misled us with information, but the fact 
that information we developed that we shared with the FBI 
and the police department was in fact used by them to- 



196 



COVER UP PHASE III: THE FBI 



CARADORI: Work against us. 

SEN. LYNCH: Discredit us. 

CARADORI: I go on record and say I - I didn't want to give 
them our data 

BERRY: Mr. Creager and I, and following our advice the 
chairman and the committee members, have instructed you 
that everything you have must be turned over to both the 
grand juries, federal and county, you feel that sometimes 
your investigative effort has been sabotaged, is that-is that 
the source of your frustration? 

CARADORI: That's right. 

The legislative investigator found that the FBI interfered 
with material even before he got to it. One afternoon in late 
1989, Caradori and Karen Ormiston spent several hours at YNR 
Airlines in Sioux City, Iowa, photocopying flight manifests of 
Larry King's charter flights. At other airlines, staffers had 
already confirmed to Caradori, that King took underage boys 
and girls with him on charter flights. At YNR, children's names 
were listed for the flights-proof that King was transporting 
children around the country as the Webb girls, Alisha Owen, 
Paul Bonacci, and others had charged. 

The owner of YNR made a phone call, and prevented Cara- 
dori from leaving with the records, some of which had yellow 
FBI tabs attached to them. Since the Franklin committee had 
only limited, in-state subpoena power, Caradori requested the 
NCVA to subpoena the records, turn them over to him, and 
not mention this to the FBI. NCVA general counsel Robert 
Fenner agreed. 

Caradori never got the records, but someone else apparently 
did. Caradori told a friend, that he saw some of the FBI stickers 
from YNR, in a notebook carried by FBI agent Mickey Mott. 
The FBI maintained that there was no proof whatsoever that 
King had transported children; the Douglas County grand jury 
lamented, that it was a pity charter companies did not keep 
flight manifests, so no trips could be verified. 

In a September 25, 1990 letter to Senator Schmit, Ormiston 
summed up the FBI's activities: 



197 



THE FRANKLIN COVER UP 



There must be some kind of provision which allows the 
State of Nebraska to retain its information so that there is 
not a probable cover-up when this stuff is turned over to 
the federal level. It is my sincere hope that the federal 
agencies cannot just walk all over the state agencies, espe- 
cially since we have given them everything we have yet we 
have been allowed to see nothing that they have. This in 
itself has not only prolonged the investigation, but it has 
also been a major factor in that the FBI does seem to get 
to our leads since they do have a lot of manpower. I do feel 
that the leads turned over to the FBI have effectively been 
stonewalled as it pertains to this investigation. 



The FBI's eagerness to discredit the victim- witnesses may 
be based on more than just an institutional commitment to 
protect former Omaha FBI chief Nick O'Hara's friend Chief 
Wadman, or Assistant U.S. Attorney Thalken, or higher-ups 
in Washington. A look at life inside the Bureau, including its 
Omaha branch, shows why. 

In August 1990, black FBI agent Donald Rochon settled his 
suit against the FBI for racial discrimination. A highly decor- 
ated veteran of the Los Angeles Police Department, Rochon 
joined the FBI in the early 1980s. According to the settlement, 
Rochon, who worked in the Omaha FBI office in 1983 and 
1984, will receive more than $1 million over his lifetime, and 
have his $500,000 in legal expenses paid. 

In his suit, Rochon charged Omaha FBI personnel with 
sexual perversion. Some of the details are recorded in a "Motion 
of the [U.S.] Attorney General for Summary Judgment as to 
Plaintiffs [Rochon] 'Chicago Claims,' " filed on September 
13, 1989 in Washington, D.C. After his Omaha assignment, 
Rochon had moved to Chicago, where the harassment con- 
tinued. 

Subhead II of that motion, "The Sexual Deviance Complaint 
and Investigation," reads in part: 

In response to his telephonic complaint, a signed sworn 
statement was taken from Rochon on July 3, 1984. In his 



198 



COVER-UP PHASE III: THE FBI 



statement, Rochon described a series of acts or events which 
he alleged were evidence of sexual deviance by SA [Special 
Agent] Dillon and other SAs assigned to the Omaha office. 
Specifically, Rochon alleged that he had "personally ob- 
served" Dillon "French kissing" SA Agent Terry 1. Bohle, 
a male, at a going-away party for SA Bohle, and that he 
likewise had "personally witnessed" Dillon "exposing him- 
self in the Omaha office during a regular work day to numer- 
ous Omaha employees, both male and female." In addition, 
Rochon said that he had heard reports that Dillon had allowed 
Bohle to urinate into his mouth and to "urinate into a beer 
bottle, [from] which he subsequently drank;" and that Dillon 
had been observed "picking out the deodorant block in [the] 
men's urinal and placing this block in his mouth." Rochon 
further alleged that Dillon appeared preoccupied with homo- 
sexual sex, kept homosexual pornography at his desk, and 
had frequently spoken in the office of homosexual acts. 

Another agent backed up Rochon's account of Dillon's 
allowing Bohle to urinate into his mouth. In an official re- 
sponse, Dillon protested that SA Bohle only "accidentally" did 
urinate on him on one occasion. He added that he, Dillon, had 
not exposed his penis in the office, as Rochon charged, but 
merely his buttocks. The Bureau defended Dillon's possession 
of pornographic homosexual literature, as necessary for his 
investigation of homosexual prostitution. But Rochon's claims 
of discrimination and harassment were so well substantiated, 
that the FBI chose to settle. 

In October 1983, the FBI announced it had investigated a 
male prostitution ring in Omaha. Apparently one of the agents 
on the case was none other than SA Dillon. U.S. Attorney Ron 
Lahners commented privately at the time, "This thing is so big 
and involves so many prominent people around this state." The 
investigation was expected to bring high-level indictments, but 
never did. One Nebraska insider said recently, "There is no 
doubt that the pedophile networks investigated in 1983 over- 
lapped those of Larry King; in fact King himself was probably 
looked at at that time." 

Special agent Dillon, who was investigating homosexual 
prostitution in those years, was "real close to some priests at 



199 



THE FRANKLIN COVER UP 



Boys Town," according to a law enforcement source who knew 
Dillon then. Years later, Caradori received allegations that some 
priests associated with Boys Town, in particular Father Pat 
Henry and Father Fiala, were pedophiles; Father Henry was 
sent to Bolivia when child abuse scandals surfaced at Boys 
Town in the mid-1980s. 

Donald Rochon was a successful agent, part of whose respon- 
sibility while in Omaha was to find missing children. He once 
was commended for finding a kidnapped girl within one day 
of beginning work on the case. Inevitably, as a black agent, 
he would have developed ties in the black community in north 
Omaha, where Larry King's pedophilia was notorious. Many 
of the boys King used as prostitutes were black, and were 
recruited from Boys Town, where the alleged pervert SA Dillon 
seemed to have friends. Would it have been just a matter of 
time until Rochon found himself investigating SA Dillon, and 
others in Dillon's clique? One thing was established for certain 
by Rochon's court documents: Dillon was the ringleader of 
the harassment operation which drove Rochon from Omaha, 
and most of the rest of the Omaha FBI office covered up 
for Dillon. 



200 



CHAPTER IS 



KATHLEEN 
SORENSON'S STORY 



At the time of his death, Gary Caradori was known, to be 
pursuing two tracks-the Washington, D.C. connection, and 
satanism. A satanic magazine was seen by a farmer at the 
site of Caradori's plane crash in rural Illinois; the magazine 
disappeared without a trace, and without further mention by 
the news media or the National Transportation Safety Board. 

Caradori told Senator Schmit he had some Franklin leads 
to follow up, while he was in Chicago for the All-Star Game. 
One place he planned to visit was a satanic book store. 

The Douglas County grand jury acknowledged that the alle- 
gations in the Franklin case "necessitated our studying satanic 
and pedophile activity in eastern Nebraska, particularly in the 
Omaha metropolitan area." 

The testimony of two victim- witnesses who did not know each 
other, Loretta Smith and Paul Bonacci, placed King in the middle 
of such activity. Smith's testimony was apparently so sensitive, 
that the Douglas County Attorney's office made an unprece- 
dented appeal to the presiding judge of the Douglas County Cir- 
cuit Court, Judge James M. Murphy, to have it sealed in perpetu- 
ity. (When I became Paul Bonacci's attorney, this judge failed 
in an attempt to prevent me from representing or assisting Paul, 
which would have left him to be represented by a public defender. 
Eventually, Judge Murphy had to disqualify himself from the 
case, as a result of his attempt to injure me.) 

Murphy granted the request to seal Smith's grand jury testi- 
mony. Its nature, however, was clear by the references to it in 
the jury's final report: 



201 



THE FRANKLIN COVER-UP 



In 1988 an Omaha girl, who was an inpatient at Richard 
Young Hospital, described a number of gruesome cult activi- 
ties which she claimed to have witnessed between the ap- 
proximate ages of 9 and 12 According to the girl, she 

became involved in a cult where older male members sexu- 
ally molested her and killed infants and children to establish 
their dominance over other cult members. 

Smith had named Larry King as present at ritual sacrifices, 
along with school superintendent Deward Finch and the person 
called Kings Horse, identified by videotaped witnesses as 
King's henchman, the other Larry. 



Satanic activity is not new in Nebraska and the surrounding 
midwestern states. Some families have passed it from genera- 
tion to generation, over fifty or a hundred years. Satanic prac- 
tices have spread into the highest levels of society, where Larry 
King traveled. 

A Nebraska woman now in her forties, who calls herself "a 
little wild" in her youth, tells how she was approached at age 
15 and asked if she were a virgin. A virgin was needed, it was 
explained, for certain occult ceremonies. When it appeared she 
might go (she didn't), she was told, "Don't be surprised at the 
wealthy and powerful people you will be seeing at the cer- 
emony." 

In 1974, ritualistic cult activity in parts of rural Nebraska 
was a big enough story to be featured in a Washington Post 
article, " 'Devil Cult' Sought in Nebraska Cattle Mutilations; 
Ranchers Enraged by Weird Deaths." It reported: 

There is angry-and serious-talk among Nebraska 
ranchers about helicopter-equipped devil cultists and fertility 
ritualism Since spring, 21 cases of cow or horse mutila- 
tions have been authenticated in a five-county area and some 
observers think the number should really be about 50. But 
it is difficult to determine the cause of death of a yearling 
after five or six days in open country. 

However Pierce County rancher Eugene Scott last week 



202 



KATHLEEN SORENSONS STORY 



found a calf which had been dead only five hours, according 
to the examining veterinarian. Its sex organs had been re- 
moved and the body drained of blood. State Patrol investiga- 
tor E.M. Hastreiter said no blood or tracks were found on 
the scene. 

Mutilation stories began in May and at first authorities 
attributed the acts to varmints, mostly coyotes. But then a 
veterinarian called to examine the dismembering and drain- 
ing of a cow near Madison in June said he was concerned 
"that a human element was involved." 

In most cases blood has been drained and reproductive 
organs removed. A helicopter frequently has been seen hov- 
ering over the area about the time of the mutilation. A copter 
with a spotlight was seen over the Lancaster County farm 
of Richard Benes the night of a confirmed mutilation there. 

Knox County Sheriff Herbert Thompson, who is investi- 
gating seven mutilations, also reports the simultaneous sight- 
ing of unidentified helicopters in that area. 

Dr. Richard Thill, Germanic professor at the University 
of Nebraska, who also teaches noncredit witchcraft courses, 
has been reviewing the reports and calls them "ritualis- 
tic." ... 

Whatever is happening has nerves on edge. Nightly, cow- 
boys in trucks with Citizen's Band radios and rifles patrol 
the prairies. Patrols are made almost nightly in the counties 
of Knox, Cedar, Antelope, Madison, and Burt. 

In the blaze of publicity, and in face of the armed patrols, 
the ritualistic activity was driven underground, or into other, 
even more horrible forms. 

According to testimony from Paul Bonacci, Larry King had 
been recruited to a satanic cult by December 1980 at the latest. 
In his written history, Bonacci described how King picked him 
up after school one day in December, "and took me to the 
Triangle which is in a wooded area in Sarpy County. I witnessed 
a sacrifice of a human baby boy. Everyone was chanting and 
it was a yearly ritual around the time of Christ's birth to pervert 
the blood of Christ. They used daggers and cut the boy and 
filled a cup with his blood and mixed urine in it and forced 
all of us to drink from the cup and chant 'Satan is Lord Lucifer 



203 



THE FRANKLIN COVER-UP 



our King. Realm of darkness come now empower us your 
slaves.' Then they all began to chant some weird sounds and 
I got scared and was threatened I'd become the next sacrifice 
if I told anyone about it." 

Bonacci said he witnessed the participation of another Frank- 
lin-related figure: did see [Alan] Baer take part in satanic 
activity on several occasions." Bonacci spoke to Dr. Judianne 
Densen-Gerber about his activities as a member of four different 
satanic cults in Nebraska, some of which had 50 to 100 
members. 



A groundbreaking account of satanic activities in Nebraska 
came from Kathleen Sorenson, the foster mother who took in 
Nelly and Kimberly Patterson after they fled from the Webbs. 

Mrs. Sorenson decided to speak out about what she had 
learned from children in her care. Together with her eldest 
foster daugher, a survivor of ritualistic abuse, she spoke at 
public forums around the state, gave radio and television inter- 
views, and appeared on Geraldo Rivera's nationally televised 
special on satanism. This is the report Kathleen Sorenson gave 
on a Christian TV interview program aired in Nebraska in 
1989, based on her experience with over 30 children who spent 
months or years in her home. 

We got involved and learned about this subject because we 
were foster parents and worked with a number of children. 
And several years back, several of the children began, after 
a period of time and building up trust, began to talk about 
some very bizarre events that had happened in their past 
and they were frightening and very confusing. I really didn't 
know what to think. We went to the police, and we went to 
social services and there was really nothing anyone could 
do. These children we worked with are now adopted, in safe 
homes, and probably would never have talked had they not 
felt able to trust the people they were living with. 

There are certain things that are in common in the chil- 
drens' stories when we talk about devil worship There 



204 



KATHLEEN SORENSON'S STORY 



are things that come up in every single story, such as candles. 
They all talk about sex. Sex is without a doubt a part of 
every area of this, all sorts of perverted sex. That is what 
you will first hear, about the sex, about the incest, and it is 
so hard to believe. But once we get that, we have learned 
that we can go on and ask and find out . . . and it will involve 
pornography; that is always part of it. Part of the reason is 
that they can use that to threaten the children. "We have 
pictures, we will show the police if you talk." It makes the 
children feel that they are in great danger, and they are all 
very frightened of the law. They talk about the garish make- 
up that the people in the group wear, they talk about singing 
that they didn't understand. Obviously that is chanting, and 
that has come up in every one of these stories, and none of 
them call it chanting. There will be dancing. Most often that 
will involve sexual acts. There will always be a leader and 
they will be very frightened of the leader. 

These children, from a very young age, and I am talking 
about children who came out of birth homes, the family they 
were born to, worshipped the devil. That's all I can share, 
and I don't pretend to be an expert. All I can tell you is 
what the children have told me. My husband and I say, we 
know things we shouldn't know. That's true, and I thought 
very carefully before I agreed to do the program, because 
we have heard so much, and it is so ugly, and so frightening, 
that you hesitate to tell it to people. It's very heavy to know. 
I don't want people running around looking in their closets 
and not leading normal lives. You don't want to think you 
are giving people ideas. I don't want people to say, if a child 
starts to talk about some of this, "They probably saw it on 
that show Kathleen did." But we're hearing more and more. 
And it is becoming very, very out in the open, and I think 
it's time for people to know that this is not fun and games; 
this is not something that we can laugh at-or ignore. 

The children I have talked to have all had to murder 
before the age of two. That is something beyond anything 
I could comprehend. But in some way, whether with the 
help of an adult's hand over theirs, by having them practise, 
by getting them excited to be part of the adult scene, they 
do murder. And the evil thing that happens is, that they 
really believe that they want to. They want to do what the 



20S 



THE FRANKLIN COVER-UP 



older people are doing, and they are praised for that. And 
that becomes their goal, to be like the adults. There is a 
little part in them, that natural good, God-given part, which 
knows that it is wrong. But in a group, and in the excitement 
of everything, they want to do that. They enjoy the sex. 
Children are capable of enjoying the sex. I didn't know that. 
Well, why would they fight against it? A child will eat a 
bag of candy if you give it to them. They will take part in 
these things willingly. When they get out and begin to talk, 
it is very difficult for them to realize, we didn't realize it at 
first, that they actually wanted to do it. 

They are told they will never get out, no one will ever 
believe them, that there is no freedom, that "the law will 
get you," they are hopeless before they get someone willing 
to listen. They are threatened with death. Every time a child 
is killed in their group, they are told, you tell, this will 
happen to you." They have every reason to believe that. So 
even when they are into the [foster care] system, and with 
another family and begin to feel somewhat safe, they still 
expect these people to show up on the doorstep. They believe 
that these people know everything they are doing, everyone 
they're talking to. One teenager told me that she had been 
told, that if she ever got married, that they would fool her, 
it would be one of them and she wouldn't know it ahead of 
time. They set them up to fail in every area. 

It is very prevalent in the midwest, Iowa, Nebraska, Mis- 
souri. Some people have speculated recently that these states 
are headquarters 

As you listen to us talk about these things, there will be 
a natural part of you which will deny much of what you 
hear, and believe me, we did too. I would like to share this 
with you, partly in the children's words, so that you can 
hear the things that they said that nobody could make up, 
that no child could know. That's what eventually convinced 
me, along with the deep emotion. The grieving, screeching 
damage and hurt that they cry out with as they talk. The 
children I will be talking about, these are all children that 
I personally talked to. They are today between the ages of 
5 and 17. When they talked they were between the ages of 
5 and 15. When these things occured to them, they were 
between the ages of, well birth, but of when memory enters 



206 



KATHLEEN SORENSON'S STORY 



in, I would say a year and a half to eight. So we are talking 

about very small children We are talking about children 

forming consciences at that time, learning right from wrong. 
These children do not know. They come out and do not 
know what is right. They are confused. What they did before, 
that they were rewarded for, is such a horror to anybody 
else, that they are shunned. And most often they have been 
in multiple placements, they will go to a home, they will 
steal, they will lie, they will hurt animals. One little guy 
would sharpen pencils and try to stab people. I don't mean 
poke, I mean stab. People don't like that in their homes. 
They don't have any idea what it is, they just think, "We 
have a weird kid." Many are sent to psychiatric hospitals 
where they are labeled psychotics, schizophrenics, and who 
would want them in. I praise God that he brought so many 
of them into my life, and through our home, and that there 
are other families like ours, it is just a movement of the 
Holy Spirit, the only way I can explain it. ... 

I will begin with the first stories that we heard, which 
will seem horrible to you, but are very mild to me, because 
we have progressed and heard far worse things. The first 
story is about two little boys who were 7 and 9 when they 
talked, and they told about sexual abuse at one point, and 
were very grieved. We talked about good and bad touching 
and we thought we really had gotten to the bottom of it, 
and then that afternoon the little one began to cry, and when 
we couldn't get the answer from him, the older brother said, 
"He is probably crying because he was in the room, when 
they killed his friend." That was the first one we know about. 
And as they described that, they talked about that particular 
victim being brought into a room, hands and arms tied, 
mouth taped, and how there had been x's marked on his 
body, on his vital organs. That was bad enough. Within a 
very few weeks we learned that it was not the adults who 
had killed that child. It was this oldest boy, who was talking. 

The next person that we talked to was a little boy, who 
was very borderline mentally. He had language problems, 
it was very hard for him to explain himself. And when he 
began to come out of it, everyone was startled the way he 
talked. We were real sure, we knew he had not been around 
these other children and heard anything, but we began to 



207 



THE FRANKLIN COVER-UP 



question ourselves, "Are we asking strange questions. Is 
there something odd about us which makes children come 
and dump these things on 

The part which made me believe this child's story, he 
talked about different babies being killed, but this particular 
one being stabbed, he curled up in a fetal position, he was 
9 years old when he was telling the story. He curled up in 
a fetal position, and his eyes got real glazed, and he said, 
"They cooked that baby on the grill." And I thought, he has 
really flipped out. I mean, I didn't know. And he said, "Oh, 
gross, it smelled like rotten chicken, or rotten deer." 

He then went on to tell us how they would cut out the 
heart, or cut off the sex organs, and save them in the refrigera- 
tor. A very typical thing that these kids talk about. They 
worship the sex organs They kept it for another cere- 
mony. I asked him where the bodies went. I did not get any 
answers from that child about what happened to the bodies, 
but the other two boys, who I spoke about first, eventually, 
they talked about throwing the babies in the fire. And I asked 
about that, "You mean they were dead when they threw 
them in the fire?" And the littlest one said, "No, no. Them 
was alive and them threw them." And by this time we were 
really getting freaked out. What were we going to do? How 
can you help these kids? Where do you find a therapist who 
can deal with this? . . . But God set up a support system. 
Other families were helping us, and that really helped. 

The next child I will share about, and I am going sort of 
by categories here, how we learned, and the types of killings, 
this little girl is II today, she was 9 when she first talked. 
It was a very painful thing when she first started to share 
the sex things. The sex things are so harmful to the children 
and they are so embarrassed and it is so personal to the 
children, and they know that they enjoyed that. They know 
that. We had been through all that. She began to draw pic- 
tures of cats, and the cats all had tails that were on the other 
side of the page, or their leg was someplace else. As we 
began to work with her and talk, she said that she had had 
to kill a pregnant cat. She first said that they had killed a 
pregnant cat. We said how did you know it was pregnant. 
Well, she could not explain that, but as we got into it, she 
confessed that she had had to kill the cat. And I asked her. 



208 



KATHLEEN SORENSON'S STORY 



And her description was, "With a knife, I put it in her bottom, 
and twisted 

Now you tell me, does a kid know that? If 1 ask a kid 
how do you kill a cat, do you think they will say that? Those 
are the kinds of details these children tell us. Later, and they 
eventually cut the cat open, and that was how they knew 
the cat was pregnant. And they eat parts of the cat, and the 
feces and the blood. And again, this was just the beginning. 
It progressed, and the next time she had to kill a baby, the 
same way-put the knife in the bottom and twist. The baby 
was alive and he was screaming. And that child hears that, 
to this day, and has nightmares and flashbacks. And they 
cut the baby open, and they ate the baby. They do this, so 
there are no bodies left, and they bum what is left and grind 
up the bones. And she talked about pouring gasoline 

on the bodies and burning them in the back yard. And I 
used to think that was nuts, but I have heard it enough times 
now that I know it must be so 

We know there are mortuaries involved, to cremate the 
bodies, and that makes sense 

The most horrible story about fire that I have to tell, and 
this is extremely, extremely disturbing, it was a little girl, 
she was a teenager when she was telling me. And she was 
describing a bam where they used to go to have their meet- 
ings and they used to gather outside the bam, and there 
would be chanting. And then as they went inside the bam 
they would be split into different groups. And she was never 
with any of her family, they all went to different places. 
And I asked her where she had to go and she said "I was 
always in the burning room." And as she went on to describe 
the burning room, I thought, how she came out of this, with 
any sanity at all, I don't know. She was a very small child. 

They would take in children, probably pre-schoolers, and 
they would hang them from the rafters in this bam, and 
there would be as many as five or ten hung in a row. They 
would be fully clothed, which is unusual, because frequently 
they are naked. The children, like this girl, were all given 
candles. And you can picture the ceremony as she described 
it. And the candles were lit. Then the adults would go forward 
and would pour liquid from a cup on each of the children's 
clothing, which was obviously gasoline or kerosene. And 



209 



THE FRANKLIN COVER-UP 



then they would give a signal and the others would have to 
go forward and set the children on fire. When they were 
done they would cut them down. The first child that this 
girl had to kill was a cousin, a little cousin. What does that 
do to you? But you couldn't object, because the children 
that objected were killed. Frequently, she said, people would 
come in families, not knowing that their child would be 
sacrificed, and she described the screams when they realized 
that their child had been killed 

This child, about two years ago, just fell to the ground 
at Christmastime, everyone thinks that Christmas is such a 
wonderful time. And she confessed that she hated Christmas, 
she couldn't wait until everything was put away, because 
all she could hear was babies crying. Christmas is the time 
when the most babies die. And she covered her ears and 
cried for 1 x h hours, and screamed, "Stop it, stop it, stop it! 
Talk to God and make him stop it!" All she could hear is 
the screams and the babies crying 

Christmas for the children I have talked to, has been one 
of the worst times. I have had three children tell me about 
a very similar ceremony, and I will kind of merge that and 
tell you how it went. They were taken to a church, and all 
the children, it is a very festive occasion, and they are taken 
to the front of the church, and a small child is now brought 
in, two of them talked about babies and they put them on 
a platform. The adults are all celebrating and dancing, and 
singing and the children are getting into the spirit of it, and 
what they are doing is forming a circle around the child, 
and of course the child represents the child Jesus, and they 
begin mocking, and spitting, and calling names, and then 
they encourage the children to begin doing it, and you can 
imagine how it gets out of control. And at some point they 
hand all of the children knives and then they are all hacking, 
and slashing until the baby is dead, and then they all celebrate 
because the child Jesus is dead. 



Kathleen Sorenson was aware that it was dangerous to tell 
the public what she did. She appealed to friends, "Pray for 
me." She died in a head-on car crash in October 1989. 



210 



KATHLEEN SORENSON'S STORY 



Fonner FBI abuse specialist Ted Gunderson evaluated the 
accident in which Kathleen Sorenson was killed as a satanic 
contract suicide. The other driver didn't die, but well could 
have; in satanic lore, a person who loses his life in such a 
contract murder/suicide will be reincarnated with more power, 
granted by Satan. 

Kathleen was driving on a long, narrow stretch of road 
between Fremont, Nebraska and her home in Blair. At least 
several people knew the road she would be on, and at what 
time. A car was traveling in front of her, which was possibly 
the "spotter" car used in such a situation. Another car, coming 
from the opposite direction, crossed the center line and rammed 
into Kathleen's car, killing her. Both the young woman driver 
and her husband had prior arrest records for cruelty to animals, 
a common marker for satanism. 

Not long after Sorenson's death, a teenager in a youth care 
facility told a worker, "You better watch out or we will get 
you like we got that lady from Blair." The youth went on to 
describe a ceremony of drawing lots for the privilege. 



One of the most potent weapons of the satanists is the 
inability of the average person to comprehend such hideous 
events as described by Kathleen Sorenson. A few years ago, 
if anyone had recounted something like her testimony to me, 
I would have recommended that they be hauled off to the loony 
farm. Today, I have no doubt that much-maybe all-of it is 
true. I have been confronted with documentation of a world I 
did not know about or believe existed. 

I understand why normal people, reading Kathleen Soren- 
son's words, will have what psychiatrists call a "denial syn- 
drome." Dr. Densen-Gerber addressed this phenomenon, when 
she testified before the Senate Franklin committee on December 
29, 1990: 

I want to say one thing. I would not want the committee to 
disband. I think: that that is not in the best interest of the 



21 j 



THE FRANKLIN COVER-UP 



average Nebraska citizen for the reasons that I have said. I 
would also not want the material to be turned over to any 
other commmittee. Because it takes two to three years for 
the average person to get through the automatic denial that 
goes along with this kind of material. The first human defense 
mechanism against untenable horrific facts is to say that 
they don't exist. 

Dr. Densen-Gerber testified that a particular satanic ritual, 
in which a two-year-old child was placed in the cavity created 
by a Caesarean section delivery of a baby, was so horrible that 
she herself refused to understand what some of her patients 
were telling her. 

I've been in this field for an awfully long time. I should 
have realized that's what these three patients were telling 
me. It was so horrific for me to contemplate. Taking a two- 
year-old child and placing it in an open uterus, in a dying 
woman. To have this child covered with blood. I used denial 
myself after all these years [This] has occurred, accord- 
ing to Sorenson, in Nebraska, and now she's dead. And the 
same thing that is described, this ceremony, was described 
by Bonacci as occurring in Nebraska. 

She reviewed her prison interview with Paul Bonacci, con- 
ducted the previous day: 1) He has an extraordinary memory 
for detail, making him an invaluable witness, 2) He does not 
lie, 3) He has precisely described satanic rituals used by interna- 
tional cults which it were impossible for him to have known, 
unless he participated in them. 

Oh, he calls one personality a computer chip in his head. 
He keeps it together by this meticulous obsessive attention 
to detail. So that he can give you times and dates that I have 
never seen in any other child abuse case. I have never seen 
a child who could do this kind of thing. ... So that he is 

an unusual witness He doesn't fabricate, he'll say "I 

don't know," if he doesn't know 

And then you have, what I think that you may have 
here. You have an internationally-connected cult. In which 
persons move from one place to another and [have] very set 
rituals and are busy attempting to bring about a force of evil 



212 



KATHLEEN SORENSON'S STORY 



of the anti-Christ. Now he knew such things, as for instance, 
let me give you an example. In discussing the C[aesarean]- 
section, which was done here in Nebraska, the Triangle. 
When he was there the girl was fifteen, as he describes her 
two year old son had to have sex with her prior to her death, 

prior to the hysterotomy or C-section The two year old 

had sex with his mother. The mother was a believer, he 
states that she was not tied down, though she was drugged, 
and a lot of them had drugs. The baby was removed and 
the blood drained, the chalice passed, the high priest urinated 
in the chalice, in the blood. Because part of the way of the 
reverse Christian belief is to take the blood and defile it. 
But only the high priest may do it. And he knew it. ... The 

baby was dismembered The next thing that he said is 

that the child would not stop crying and so they eliminated 
that child as well. And ate the flesh. And the mother died 
and she was also eaten by the cult. And I said, "well, what 
happened to the bones and teeth?" And he said that they 
were ground in a machine. Which is one of the ways that 
they do do it. He described it extremely well. 

Occasionally you have to ask a question in a matter of 
fact way. So instead of saying was there anything done with 
any body part that was unusual, I said "Who ate the eyes?" 
Because part of this ritual is the eating of the eyes. And 
because the concept is that when you eat the eyes of the 
fetus or the new born, you gain sight, that's a Celtic Druid 
ritual which has been taken by these individuals. And without 
a change in voice or anything else he said Malachi ate the 

eyes And I said but you were supposed to eat the eyes 

[as the third-ranking member in the cult]. And he said I was 

out of favor and was not permitted to eat the eyes But 

I have to tell you the detail that he knew about how the 
rituals are conducted have convinced me he has been at ritual 
events. There is no other way that this child could know. 



213 



CHAPTER 16 



FOUR FIGHTERS 
WHO DIDN'T QUI 



Freeing America from the influence of those who protect and 
engage in official corruption-from drug dealing to pedophilia, 
from abuse of public office to protection of satanism-will 
depend on people who put fear behind them and stand for 
human dignity. The lives of four fighters who didn't quit, even 
under frightening conditions, give hope and encouragement for 
the fight to defeat the pedophile rings. I asked their friends to 
talk about these four people. I have incorporated their observa- 
tions with some of my own. 

PAUL BONACCI, 

A CHRISTIAN FIGHTING 

FOR LIFE 

Two years ago, if anyone had told me, John DeCamp, that 
a person could have several distinct, real personalities within 
one body, I would have thought they had been reading too 
much science fiction, or living with Alice in Wonderland. 
Then, the Douglas County Grand Jury indictment of Paul Bo- 
nacci brought me deeper into the Franklin case, and the suffer- 
ing of its victims. Paul Bonacci called me shortly after he was 
indicted, and I agreed to visit him in the jail where he was 
incarcerated for touching another boy on the outside of his 
pants. 

Meeting with Paul, I have spoken to several of his personali- 
ties. Three psychiatrists who have examined him concurred in 
the diagnosis of Multiple Personality Disorder, brought on by 



214 



FOUR FIGHTERS WHO DIDN'T QUIT 

horrible, traumatic abuse when he was a child. My first act 
with respect to representing Paul Bonacci was to have him 
write down everything he could remember, about individuals 
who had abused him, from his earliest boyhood. An excerpt 
from what he wrote appears in Chapter 10. In that document 
and in Paul's letters, his handwriting will vary, depending on 
which personality is in control. 

Bonacci was sentenced to five years in prison in 1989, for 
molesting a young boy for whom he was baby-sitting. Appar- 
ently one of Paul's homosexual personalities was in control of 
him during the incident, in which he briefly put his hand on 
the outside of the young boy's pants, an activity stopped when 
a remorse-stricken Paul reasserted control. Despite testimony 
from family friends and church members, that this was out of 
character, and despite its being a first offense, the Omaha court 
"threw the book" at Paul. This was before Gary Caradori first 
interviewed Paul, but the Franklin case had broken, and it 
would have been known to those to whom it mattered, that 
Bonacci could be a key Franklin witness. 

Paul Bonacci is not just a victim. He is an intelligent young 
man, who has entered a process of redemption. Bonacci was 
intentionally damaged, spiritually and physically, from a very 
early age. He was forced to participate in "headhunting" expedi- 
tions, luring younger boys into servitude. 

Throughout his childhood, Paul fought desperately to survive 
hell. He was brutalized continuously. Once when he was very 
young and it was discovered he was going to tell about the 
abuse, he had hot metal shoved into his mouth. Now, Paul is 
in a fight for his life, and for the life of others. A person who, 
until quite recently, was involved in a life very immoral and 
dangerous to others, is now motivated to an effort to live by 
love and a sense of justice. 

In letters and conversations with friends, Bonacci says that 
the mission of his life is to prevent other children from suffering 
what he has. He speaks of being strong in his Christian faith, 
and of his efforts to convert other inmates. 

In a letter from prison, to a friend, Bonacci talked about his 
desire to serve others: "I'm a 23 year old man who loves God 



21S 



THE FRANKLIN COVER-UP 



and wants to do the right thing to prevent other children from 
being abused. I'm against anyone harming a child in any way. 
I'm only wanting to see the men stopped from hurting others. 
They can kill me. I'm ready to die for what's right. If by my 
death I can prevent a child from being abused, I'd do it." 

In his written report on his victimization, Paul said, "I have 
in the past cowered and given up. I no longer can cower and 
give up, instead I must stand firm and with truth go forward 
and fight against the men and the evil they have done to myself 
and other young people. '[PJerilous times shall come, for men 
shall be lovers of their own selves, covetous, boasters, proud, 
blasphemers, disobedient to parents, unthankful, unholy, with- 
out natural affection, trucebreakers, false accusers, incontinent, 
fierce, despisers of those that are good, traitors, heady, high- 
minded, lovers of pleasures more than lovers of God; having 
a form of godliness, but denying the power thereof: from such 
turn away. For of this sort are they which creep into houses, 
and lead captive silly women laden with sins, led away with 
divers lusts, ever learning, and never able to come to the knowl- 
edge of the truth.' 2 Timothy 3:1-9. 

"This scripture just about says it all about the men who have 
used me and others. They can continue to deny these things 
before men, but the day will come when they will stand before 

God and He will know all and then they cannot deny I 

have continued to speak the truth and for doing so I am now 
being put down as a liar. The only liars are those who continue 
to deny the terrible sins they have done. Also Troy and Danny 
who at first told the truth and then began to lie to save their 
own butts from indictments which everyone with a brain could 
see coming for the victims. I will stand firm in my faith and 
trusting in the Lord to show the truth in the end." 

Paul has repeatedly been placed in situations of danger while 
in prison. He has been moved to different facilities, contrary 
to agreements worked out by me as his attorney. He was given 
food to which he was allergic, while his weight dropped, and 
he was denied a blanket for months. He has had no medical 
help for his Multiple Personality Disorder, induced by what 



216 



FOUR FIGHTERS WHO DIDN'T QUIT 

Dr. Densen-Gerber called the "emotional Auschwitz" of rit- 
ual abuse. 

Bonacci was beaten several times in jail. He has been placed 
in the same area in the jail with potentially violent people 
associated with Alan Baer and Larry King. 

Since he testified before the Legislature's Franklin commit- 
tee, Paul Bonacci has been under continual attack by the irregu- 
lar troops, so to speak, of the Nebraska cover-up, such as the 
World-Herald and its reporter Bob Dorr, who have ridiculed 
him as a hoaxer. 

Paul Bonacci's commitment to saving other children is evi- 
dent in his willingness to be interviewed by investigators of 
child abuse. In order to remember details, Paul must go through 
the difficult process of allowing his different personalities to 
come forward and speak. If one personality can't remember, 
another might. The personalities were originally established, 
one by one, at the exact moments of psychological terror when 
Paul as a defenseless child was physically attacked. Some of 
the personalities are very young children, some are girls, some 
are boys, some are men. The process of calling them up, of 
assuming these different identities, often involves intense pain 
for Paul. If he didn't care, he wouldn't go through these diffi- 
cult interviews. 



ALISHA OWEN, 
PERSECUTED FOR 
RIGHTEOUS NESS'S AKE 

"My statements are true. I'll never, never-change my story. 
The truth is the truth," Alisha Owen said during her trial. The 
pressure on her to recant has been immense. 

Alisha's strength and determination have become famous 
among her supporters in Nebraska. People who meet her now, 
often remark that she is motivated by love. One woman said 
that the first thing Alisha ever told her, was that she is strong 
in her religious faith and that she must and will do the right 



217 



THE FRANKLIN COVER-UP 



thing, "because the Lord will be here with me" through what 
she knows will be a long ordeal ahead. 

Alisha Owen has been told she will have to serve a minimum 
of ten years, seven months of her sentence, even with "good 
time." Alisha's daughter, Amanda, has been inconsolable; until 
she saw Alisha in the courtroom at the sentencing hearing, she 
was convinced her mother was dead. At sentencing, Alisha 
read a statement, in which she blamed state prosecutor Gerald 
Moran, the World-Herald, and two of the men she accused of 
abusing her, Robert Wadman and Harold Andersen, for cloud- 
ing the issues and fueling a climate of innuendo against her. 
"I couldn't change my story when the FBI asked me to," she 
said, "because I can look into the mirror and know I am telling 
the truth. Children ask for justice, while adults plead for mercy. 
Your honor, I stand before you here today and I ask for justice." 

Even while she was a repeated victim of abuse, Alisha was 
an excellent student and a youth leader in her church. She is 
known as an intelligent and well organized person. During her 
trial, courtroom observers were impressed by her close attention 
and participation in all aspects of her legal defense. Meanwhile, 
the prosecution attempted to portray Alisha as an immoral 
person since childhood, the way a rapist's lawyers often try to 
depict the rape victim as a slut who invited and possibly de- 
served abuse. This courtroom performance reduced Alisha to 
tears several times. 

As a teenager, Alisha gave birth to a child, who she strongly 
maintains was fathered by one of her abusers, Chief Wadman. 
Her parents have stood by her, and in support of her little 
daughter. 

Even through her first months in jail, through the grand 
juries' denunciation and indictment of her, through its repetition 
by the World-Herald and CBS News, and through her long 
trial and sentencing, Alisha's supporters say, "her faith and 
strength have amazed us. She is always honest, loyal, and even 
maintains her sense of humor. Alisha maintains she will not 
give up until these perpetrators give up-and she won't give 
up!" 

Even though a court-appointed psychiatrist said that Alisha 



218 



FOUR FIGHTERS WHO DIDN'T QUIT 

did not tolerate well being alone, during 1990 and 1991 she 
was held in solitary confinement longer than any other female 
inmate in the history of the Nebraska penal system. A friend 
of hers said, "Her determination was unchanged by being in sol- 
itary." 

When she was 17, Alisha was discarded as a sexual object 
by the pedophiles. At that point, she was in a position to have 
become a trusted, and very wealthy, member of organized 
crime networks. Someone serving as a "mule," or youthful 
courier for criminal drug runners, would have narcotics worth 
hundreds of thousands of dollars pass through her hands. When 
Alisha started to talk to Franklin committee investigators, many 
deals were offered to her to make her stop. But her disgust and 
concern over what was happening to other children prevailed. 



LORAN SCHMIT, FARMER, 
SENATOR, MAN WITH 
COURAGE 

For the two years of its existence, Senator Loran Schmit 
chaired the Franklin committee of Nebraska's unicameral Leg- 
islature. It was disbanded against his recommendation. 

Schmit has farmed all his life. He is the father often children, 
a grandfather, and has served in the Nebraska Legislature for 
twenty-three years. His work in the Legislature, on agricultural 
and water resources development in the state, is described 
by long-time associates as being of "legendary proportions." 
Senator Schmit has chaired the Agriculture, Public Works, and 
Natural Resources committees of the Legislature. He was a 
member of its Executive Board for eighteen years. In January 
1991, when the Franklin committee was decommissioned, the 
newly elected Legislature stripped Schmit and its other mem- 
bers of key positions; Schmit lost his chairmanship of the 
Natural Resources committee. 

Senator Schmit has worked as a crop duster. Of his more 
than 40,000 hours of flying time as a pilot, a majority has been 
in the dangerous occupation of low altitude crop dusting and 



219 



THE FRANKLIN COVER UP 



seeding, in both fixed-wing craft and helicopters. His personal 
knowledge of aircraft boosted his certainty, that his investigator 
Gary Caradori' s violent death was not accidental. 

Loran Schmit is often moved close to tears, when he speaks 
about the work and the death of Caradori. In December 1990, 
meeting with the Ministerial Alliance in Omaha, he said he 
felt personally responsible for the death of the man he hired 
to investigate the Franklin Credit Union case. 

Schmit has a longstanding reputation as a last resort for 
people trying to help children in trouble. As Franklin committee 
chairman, Schmit often stayed at his office late into the night, 
to pursue the investigation of the pedophile ring. After Caradori 
was killed, and the Franklin committee no longer had a profes- 
sional investigator, Schmit remarked, "Gary had this remark- 
able knack of just putting on his casual clothes and going out 
to places where people had information and just sitting down 
with them and gaining their trust. That's how he brought in 
all these facts in the investigation. I know I can't do it like 
Gary did, but when I hear that someone has information for 
us I just put on myoid clothes and go wherever I need to go 
and sit down with them, and try to get that information myself. 
Gary would have done it much better, but I try." 

This senator, who often starts speeches by saying, "Well, 
I'm just a farmer, but here's what I think," is a plain-spoken 
man. The image before him, of setting the pace for the people 
of his state, and of keeping the faith with his martyred investiga- 
tor, has proven Loran Schmit to be a man of courage. He has 
withstood threats and harassment. At the height of the Franklin 
committee investigation, a piece of gallows humor around the 
state house was to ask, "Who wants to go start Schmit's car to- 
night?" 

There have been efforts to ruin Schmit financially, including 
by means of spurious lawsuits filed against him. The FBI 
launched several investigations of Schmit. He also found his 
legislative district so radically altered in a June 1991 redistrict- 
ing, that his reelection became a long shot. 

Unhappy about what he regards as a do-nothing attitude of 
a majority of state senators toward child abuse, Loran Schmit 



220 



FOUR FIGHTERS WHO DIDN'T QUIT 

recently asked, "When does it happen that we cross the line 
and the passivity of the Senate makes us co-conspirators with 
corruption? We have to take action, and stop this abuse once 
and for all." 

While most of the Legislature cowered, fellow Franklin 
committee members Senator Dan Lynch and Senator Bernice 
Labedz, especially, showed courage in standing by Senator 
Schmit to the day their committee was dissolved. 



GARY CARADORI, MARTYR 

Gary Caradori told the victim- witnesses of child abuse whom 
he interviewed, that he would die for them, if necessary. He 
died on July 11, 1990, at the age of 41, when his plane crashed 
in Illinois. His eight-year-old son was also killed. 

During Alisha Owen's trial, FBI agent Rick Culver testified 
that Caradori' s work for the Franklin committee was worthless. 
Former Police Chief Robert Wadman, posing as the wronged 
party, sued the state for damages, charging that Caradori' s 
investigation caused him mental anguish. Wadman's claim 
against the state was turned down, and the lawsuit dismissed. 

Mary Caradori has commented, that there were no such 
slanders of her son while he was alive. She calls him "a gentle, 
smiling man, a great man and the greatest investigator Nebraska 
has ever had." The man the World-Herald now smears as a 
Keystone Kop, she notes, was the youngest person ever to 
qualify as an investigator for the State Patrol. He was univer- 
sally liked and respected, and he was "so bothered by what he 
was finding in the Franklin investigation that he just couldn't 
give it up." 

"He worked on this investigation sometimes 24 or 48 hours 
without eating or sleeping," Caradori's mother recalls. "He 
looked so worn out I was worried about him. I told him, 'maybe 
you should give it up,' but he couldn't give it up. He didn't 
need this case, but he was just so dedicated." 

Mary Caradori says that the accusation that Gary wanted to 
make a movie out of the Franklin case was a lie. She is angered 



221 



THE FRANKLIN COVER-UP 



by the Douglas County grand jury's suggestion that tape breaks 
in Caradori's videotaped interviews of victim- witnesses con- 
cealed his coaching them. "He would stop the tape when the 
kids would start to break down," she said. "He would always 
leave them their dignity. That is the kind of man he was. And 
he knew that they were victims of slavery and a Satanic cult. 
He knew that if the perpetrators aren't brought to justice, they 
will not stop." 

A former Nebraska state patrolman, who later opened his 
own private investigative company, Caradori was known as a 
resourceful investigator. George Zahn, plant manager at the 
Monfort of Colorado meatpacking plant in Grand Island, Ne- 
braska, told the World-Herald that Caradori " 'did a very good 
job for us,' providing security and handling some investigations 
for Monfort for about seven years. 'He works any and all 
hours,' Zahn said. 'It doesn't make any difference to him. He's 
a person you can trust.' " Lincoln private investigator Edward 
H. Itzen, president of Metropolitan Protection Service, added, 
"I've never heard anything but good about him." Caradori once 
traveled to East Germany and found a woman's father, 39 years 
after they were separated. He rescued young girls who ran 
away from home and became caught up in prostitution in Las 
Vegas or California. Franklin committee counsel John Stevens 
Berry told the World-Herald, that Caradori is "the kind of guy 
who can check out the cat houses and find the child and get 
the kid out of there." 

Looking back, Mary Caradori recalls Gary's anticipation 
that the Franklin case was about to break wide open. "You'd 
better believe there was a cover-up," she says. "My daughter- 
in-law and I were never notified about Gary and A.J.' s death. 
My friend had to tell me over the phone they were dead." 

Gary Caradori's widow, Sandie, was his high school sweet- 
heart. They had two sons. AJ., the younger, was an avid 
baseball fan, like his father. Departing for the All-Star Game, 
his grandmother recalls, AJ. was overjoyed that he would 
finally get to see his favorite big league players in person. "He 
was a wonderful little boy." 

The Reverend James Bevel, civil rights leader, addressed 



222 



FOUR FIGHTERS WHO DIDN'T QUIT 

Mary Caradori during his speech to a rally held by the Nebraska 
Leadership Conference in Lincoln in March 1991. He thanked 
her "for the gift of your son and grandson, who died for what 
is right." Senator Schmit, to applause, declared that it is impera- 
tive to "leave no stone unturned," to find out why Gary and 
A J. died. 



223 



CHAPTER 17 



"SO THAT THE 
TRUTH WOULD 
NEVER COME OUT" 



With the sentencing of Alisha Owen, the Nebraska judiciary 
and law enforcement agencies wanted to ring down the curtain 
on the Franklin case, once and for all. They and federal authori- 
ties moved to tidy up matters that were left hanging. 

Larry King is in prison, but not for child abuse. Under a 
plea bargain arrangement finalized with federal prosecutors on 
June 17, 1991, King is serving a IS-year sentence for embezzle- 
ment, conspiracy and making false financial record entries. 
Since the Douglas County grand jury deferred to the federal 
authorities, and since there was no trial of King on the federal 
embezzlement or any other charges, the evidence ofchildprosti- 
tution and abuse perpetrated by King was never presented in 
any court. 

Jarrett Webb did not stand trial. In a calculated display of 
concern, the Douglas County grand jury recommended in May 
1990, that Webb be indicted by Washington County prosecutors 
for "third degree sexual assault of a minor," Nelly Patterson. 
On December 26, 1990, however, Washington County Judge 
David Quist dismissed the charges against Webb, ruling that 
the statute of limitations had run out on acts committed in 
1985. In Nebraska, cases of abuse of children under sixteen 
years of age are supposed to receive an automatic extension 
of the statute. But although Nelly had reported abuse that began 
when she was nine years old, the judge ruled that the assaults 
in question were not prosecutable because they occurred two 
days after the girl's sixteenth birthday! 



224 



"SO THE TRUTH WOULD NEVER COME OUT" 

Alisha Owen was convicted of lying when she said she was 
sexually used by Robert Wadman. I will allow the articles and 
statements of others to deal with this, since I have, at Alisha's 
request, now agreed to represent her free of charge. I do not 
want to say anything here that would jeopardize Alisha or my 
ability to help her. But I can say, that Alisha Owen's trial took 
the strangest turns I have seen any trial take. Suffice it to say, 
that I believe she had the most extraordinary trial there ever 
was in Nebraska. I have not a shadow of a doubt that her story 
is true, like Paul Bonacci's. 

On August 8, 1991, Alisha Owen was sentenced to three 
consecutive three to nine year prison terms. As she remarked, 
she will be in jail longer than Larry King. 

Minutes after Owen's conviction, Prosecutor Gerald Moran 
dropped the Douglas County perjury charges against Paul Bo- 
nacci. He also obtained a court order that barred me from gaining 
access to other files that would have been used in Paul's trial. 

Speaking as Paul's attorney, I charged, "They dropped the 
charges so that the truth would never come out." 

For months, motion after motion to deposition those Bonacci 
accused was denied by Judge Patrick Mullen. Now, Moran 
stipulated that any such depositions and discovery were perma- 
nently ruled out. 

I had seen it coming. As we moved closer to the commence- 
ment of Paul Bonacci's perjury trial, I said many times to all who 
would listen, "I guarantee you that Paul Bonacci will never go 
to trial. They will either kill him, or dismiss the charges. We are 
ready for trial. When we have the trial, the entire picture of crime, 
drug dealing, pedophilia and child abuse, and even this satanic 
cult activity, will come out, with all the personalities associated 
with it. They dare not bring this boy to trial. Or, if they are going 
to bring him to trial, they will have to get rid of me first and get 
someone in there handling the trial whom they control." 



For over a year, after the initial flurry of coverage in 1989, 
the national news media avoided the Franklin case. On June 



225 



THE FRANKLIN COVER-UP 



19, 1991, two days before the jury convicted Alisha Owen, 
CBS-TV featured Nebraska on its prime time show, "48 
Hours." 

The program, ostensibly on the impact of child abuse in 
various communities, stated its conclusion on the Franklin case 
at the outset: "Some communities have over-reacted and ac- 
cused innocent people." Expounding on the alleged injustices 
done to those named by victim-witnesses as abusers, the pro- 
ducers had former Police Chief Robert Wadman appear tearful 
before the cameras to say that the Franklin case had been "the 
most God-awful experience you could ever go through." Omaha 
attorney James Martin Davis offered his assessment, that "Bob 
Wadman has been scarred for the rest of his life." 

Neither Senator Schmit, nor nor Owen, nor Bonacci was 
interviewed; besides the alleged perpetrators, only Troy Boner 
was given air time, to say that he had fabricated all the charges. 
Wadman asserted that "Caradori led witnesses, fed witnesses," 
while Boner pronounced that "the whole thing was just a lie," 
and that "Caradori convinced me to do it." The narrator stated, 
"Caradori's motives remain unknown." 

The impact on Alisha Owen's trial, of such a presumably 
authoritative national TV show passing judgment on the Ne- 
braska case, was devastating. Although the judge expressly 
ordered the jurors not to watch the program, a good number 
of them did, and several reported that it was the main topic of 
discussion in the jury room the next morning! 

In articles on July 20 and 21 and a lead editorial of July 26, 
1991, the World-Herald attacked victim Owen, Senator Schmit, 
and myself as "bacteria that cause a plague," and ridiculed the 
legislature's investigation as a "Keystone Kop" affair. The 
editorial, entitled "The Lessons of Franklin," denounced all 
and sundry-Senator Loran Schmit, myself, the Legislature, 
the Omaha news media, Douglas County Sheriff Dick Roth, 
and the general public-whosoever had ever intimated that 
the children might be telling the truth-for "damaging the 
reputations of innocent people." Never again, the editorial in- 
toned, should the Legislature exercise its rights to oversee law 
enforcement in the state. 



226 



"SO THE TRUTH WOULD NEVER COME OUT" 



Neither the Franklin case nor the hideous kind of activity 
it involved, however, are over with. The World-Herald itself 
demonstrated as much, in a July 20, 1991 article appearing 
side-by-side with one of its denunciations of the Franklin inves- 
tigators. Under the headline "Male Hustlers Move In When 
Workers Leave," the paper trumpeted that prostitution and child 
abuse were here to stay. 

The article quoted Sgt. Ken Bovasso of the OPD: "Male 
prostitution has been occurring at 16th and Jackson for years. 
... I don't think you can stop it ... it will continue to happen." 
(This was the same Sgt. Bovasso who supervised Officer Irl 
Carmean's work with Loretta Smith, which abruptly termi- 
nated. He is also the Bovasso charged in the civil suit filed by 
this writer, with having subjected Paul Bonacci "to long hours 
of brutal interrogation involving threats, intimidation, [and] 
physical and mental abuse . . . purposely designed to prevent 
him [Bonacci] from disclosing any information he had regard- 
ing the conduct of prominent Omaha citizens.") Witnesses 
interviewed by the World-Herald described the expensive cars 
driven by the men who pick up young boys, and said that 
between "tricks" the boys shoot up drugs and discard the hypo- 
dermic needles on the sidewalk. 

The Franklin case remains alive not only in Omaha, but 
in its nationwide and international scope. Karen Ormiston, 
Caradori's coworker, reviewed the case in September 1990. In 
her notes on a September 22, 1990 conversation with Alisha 
Owen's lawyer, Henry Rosenthal, Ormiston recorded: 

I did indicate to Henry that these kids were only a small 
part of this case, and that the bulk and real intent of this 
case was to determine why OPD, and the NSP had 

insisted that they had thoroughly investigated these allega- 
tions and concluded that there was no merit to these allega- 
tions. I also indicated that the end result of this case should 
be to determine where the monies earned from kiddie porn, 
child prostitution, and drug activity, were going to. Failure 
of the various law enforcement agencies to follow up on 



227 



THE FRANKLIN COVER UP 



these allegations which they had received from several years 
back was also discussed. Again, I stated that the statements 
of the kids was [sic] very important, but these kids were 
but a small part of the frightening reality and extent of the 
"bigger picture" of this case. 

Three days later, Ormiston wrote to Senator Schmit in the 
same vein: 

Gary and I have always maintained that these kids were not 
the case-they were only a small part of it. For instance, 
where does all the money go that is earned by child prostitu- 
tion and kiddie porn, and what is it used for? Why is the 
FBI and/or others trying so desperately to cover all this up? 
We both know that if these people were just ordinary citizens 
that they would certainly be in prison right now based on 
the incredible amount of information they, the State Grand 
Jury and Federal Grand Jury, have already received. As a 
matter of fact, they would have been endicted [sic] based 
onjust a small portion of this information and the allegations 
made against them. 

The Franklin investigators had lifted a comer of the rug, 
under which could be glimpsed a national and international 
organized crime syndicate, engaged in pedophilia, pornogra- 
phy, satanism, drugs, and money-laundering, and protected, as 
their own limited investigation began to show, by federal au- 
thorities. 

Pull a thread on any comer of this vast, seamless web, and 
the whole begins to unravel. In the Franklin case, this is nowhere 
clearer than in the testimony of Paul Bonacci. 



I debriefed Paul Bonacci at length, as did private investigator 
Roy Stephens, in preparation for the perjury trial that was not to 
be. Through his many personalities, each with its own distinct, 
partial recollections, Bonacci provided new evidence on child 
kidnaping, pornography, and murder taking place in the United 
States and abroad. The Franklin case was just one part of what 



228 



SO THE TRUTH WOULD NEVER COME OUT' 



he knew. The North American Man-Boy Love Association, or 
NAMBLA, figured prominently in what else Bonacci could 
recall. 

The motto of NAMBLA is "Sex before eight, or it's too 
late." One of its leaders is named David Thorstadt. Two of 
Bonacci's personalities, Sean and Christopher, have "Thors- 
tadt" as their last name. Bonacci reports that he was brought 
into contact with Thorstadt through two Omaha men, that he 
traveled with Thorstadt to New York, and that he witnessed 
NAMBLA-organized auctions of children. 

Alexandrew, another Bonacci personality, wrote to Dr. 
Densen-Gerber, who had examined him in prison, in April 
1991: 

I can even recall when and where I remember you from. 
Tell me if I'm wrong in which I know you wouldn't remem- 
ber me. It was in New York on December I believe the 
28th or 29th, 1982, it was a Tuesday or Wednesday (not 
important). It was a news conference at I believe the Holiday 
Inn. I had to wait for David [Thorstadt] with a friend. When 
he got done he told me that wicked old witch Gerber was 
someone he had to fix somehow. 

Densen-Gerber, dubbed "public enemy #1" by NAMBLA 
for her efforts to expose the organization, commented, "He's 
absolutely right. The details are perfect. ..." 

Bonacci may remember events in Europe. He tells of having 
traveled to Europe more than once. One of his personalities 
speaks and writes German, more fluently than is probable just 
from Paul's brief study of German in high school. 



In July 1991, just as the Franklin case got officially wrapped 
up at the sentencing of Alisha Owen, the news broke in Iowa 
that Paul Bonacci had given evidence in one of the most notori- 
ous kidnaping cases in the country. It was the disappearance 
of Johnny Gosch. 

Early Sunday morning, September 5, 1982, 12-year-old 
Johnny Gosch went out on his Des Moines Register paper 



229 



THE FRANKLIN COVER UP 



delivery route, as usual. Only that Sunday, he never came 
home. For nine years, his parents have searched the country 
for him. Most evenings, and weekends when they were not on 
the road to check out leads, they sold candy bars in local 
shopping centers, to finance the search. In late 1990, the 
Gosches got the first major break in years, because of what 
Paul Bonacci had to tell. 

I had noted that one of the events Paul described reminded 
me of the case of Johnny Gosch, which I had read about years 
earlier. I went to the library, and confirmed the similarity of 
the details of the case, with what Paul said. I then contacted 
the Gosch family. They advised me that they had had their fill 
of false leads from people who claimed to know something 
about their missing boy, and people who claimed to have infor- 
mation for sale but did not seem genuinely interested. But a 
couple of weeks later, Mr. Gosch did come to Omaha. 

The Des Moines Register of July 24, 1991 reported on 
what developed: 

A Nebraska inmate has provided details about the abduction 
of Johnny Gosch that only someone with firsthand knowl- 
edge could have had, his lawyer said Tuesday. 

Inmate Paul Bonacci's account "did not match up 90 
percent, not 95 percent, not 98 percent, but 100 percent," 
John DeCamp said. 

am convinced this kid is telling absolutely the truth. 
... He never varied on the time. He gave a description of 
Johnny's pants, names on his shirt, scars on the body." 

DeCamp said he became suspicious of a Gosch connec- 
tion when he read a transcript of a psychiatrist's interview 
with Bonacci in which an "incident" involving a newspaper 
carrier was mentioned. DeCamp said Bonacci didn't identify 
Gosch by his full name. 

went to the library and checked on Johnny Gosch. I 
wrote to the Gosches and told them I don't know if there 
is any validity, but the dates coincide and he talks about 
someone from Iowa." 

DeCamp said John Gosch, the boy's father, met with 
Bonacci, "and started getting chills. I believe he believed 
him," DeCamp said. 



230 



"SO THE TRUTH WOULD NEVER COME OUT" 

John Gosch, Sr. walked into the prison in Lincoln, Nebraska 
to meet Paul Bonacci for the first time, unannounced. Sitting 
down across from him, Gosch asked Bonacci, "Do you know 
who I am?" Bonacci replied, "You look like-it can't be-the 
eyes, you look like Johnny Gosch." 

Noreen Gosch told the World-Herald, that paper reported 
on July 22, 1991, that Bonacci knew "some incredible things" 
about the case. For instance, "There were photographs taken 
of Johnny prior to the kidnaping. We know this because a 
woman reported it to police. We're convinced Bonacci saw 
those pictures. He accurately described the location, which is 
not far from our home. He described many things about the 
pictures which we have never publicly talked about." Bonacci 
also described a mark on Johnny Gosch's body, which the 
Gosches had never publicized. 

As a result of the Gosch meeting, Roy Stephens came to 
visit with me. Shortly after we discussed Paul Bonacci and the 
Gosch case, I hired him to check out Bonacci's story on Gosch 
and on other things. 

Roy Stephens is an Omaha-based investigator and a founder 
of the Missing Children's Foundation. A former safecracker who 
went straight, Stephens was named "Outstanding Man of the 
Year" for 199 1 , by the Nebraska Jaycees, for his work in recover- 
ing children. Roy is remembered in Nebraska, as the man who 
did what the police and other investigators were unable todo- 
locate and cause the conviction of the kidnaper of Jill Cutshall, 
the Norfolk, Nebraska girl who disappeared in 1987 and almost 
certainly was murdered, though her body was never found. 

Stephens was cited as the leading child finder in the nation, 
in an article in the 1991 summer supplement to Forbes maga- 
zine: "The best in the business in that field, according to a 
survey of his peers, is Roy Stephens . . . who has recovered 
some 50 missing children over the last five-and-a-half years," 
said G. Gordon Liddy of Watergate fame, now a private security 
consultant in Florida. 

Stephens spent hundreds of hours debriefing Bonacci in 
prison, and many more on the road in Iowa, Nebraska, Colorado 
and Minnesota, visiting the sites and tracking down the people 



231 



THE FRANKLIN COVER-UP 



Bonacci told him about. Quoted in the July 22, 1991 World- 
Herald, Stephens said that Bonacci "hasn't told me anything 
that hasn't been true." 

Bonacci described to Stephens the kidnaping of Johnny 
Gosch, as an eyewitness: 

PB: Well, we got up at, oh, before the sun got up. He [Emilio] 
said he wanted to go out cause he said that he had been 
around here before and stuff and he said that paper boys 
would be going out pretty soon. He said he might be able 
to, that that would be the best bet. He wanted them, because 
he said they were easier on mornings cause there was nobody 
else around. Everyone else is asleep 

RS: O.K., so it was just you, Mike and Emilio. And you 
were in his blue car, the blue Chevy. O.K., then what 
happened? 

PB: Oh, then he, well, at first he had us, they had Mike was 
in the back seat and he was kind of covered up with a 
blanket. . . . Me I was stuck in the trunk. Because I had said 
something and Emilio hit me a couple of times. 

RS: What did you say? 

PB: Called him a dirty bastard because of the way he treated 

Mike At night when we was in the hotel and stuff he'd 

brought some other guy and made Mike have sex with that 
guy. I didn't think that was right. . . . 

RS: O.K., so you're in the trunk and Mike is on the floor or on 
the back seat covered with a blanket, and what [happened]? 

PB: And then I heard them talking to somebody else at the 
car, but I don't know who it was cause we stopped. He was 
talking to somebody asking for directions; asking where 
some place was. And it sounded like there was more than 
one kid. It sounded like there was a couple of them there. 
And then we went around the block and he let me out of 
the trunk and told Mike to, he says, if you don't do what I 
say, I'm gonna shoot you. He has a gun he pulled out and 
pointed at me and says, you do what I say or I'll shoot you. 
We drove around 



232 



"SO THE TRUTH WOULD NEVER COME OUT" 

RS: So you're out of the trunk now? 

PB: Yeah. I was sitting in the back seat with Mike. 

RS: You're both sitting there? Were you hidden in the back 
seat or were you just sitting up normal? 

PB: Down low, kind of sitting on the floor. And then Emilio, 
I guess, I don't know what he did, but he, Mike told me, 
he says, when the car slows down, he says, when you feel 
the brakes jerk, he says, I'll grab him and you just hold him 
down. And so it happened quick. It's like we went up, I felt 
the brakes jerk, and I saw the door fly open and I saw Mike 
jump out and the next thing I know there was somebody, 
you know, he grabbed the boy and he'd thrown him in and 
my job, you know we were supposed to do is just hold him 
down and gag his mouth so he couldn't yell or nothing. And 
then after we had, just, like two seconds, just spun off, tore 
off, got out of there. 

Two other people were involved in the kidnaping, one of 
whom was a local contact. Bonacci named them all. According 
to a July 18 article in the Des Moines Register, "Stephens has 
told the family, sources say, that [Bonacci] identified the Des 
Moines 'contact' from a photograph. The suspected contact, 
said [Noreen] Gosch, has been under suspicion by the family 
for some time." Furthermore, "Gosch said Stephens told her 
the same ring may be involved in other kidnapings in the region, 
including the suspected abuction ofDes Moines Register earner 
Eugene Martin, 13, in south Des Moines in 1984, and more 
recently, that of Jacob Wetterling in St. Joseph, Minn." 

Bonacci described a network of safehouses, where the pedo- 
phile ring stored kidnaped children before selling them. He said 
he met Johnny Gosch again several years later, and provided a 
detailed description of the farm on which Gosch was being 
kept in Colorado and of Gosch's new "parents," a homosexual 
man and a lesbian in their thirties. After Gosch once attempted 
to run away, Bonacci reported, they branded him on the buttocks 
with the same brand used on horses and cows on the farm, of 
which Bonacci drew a picture for Roy Stephens. 

The man called Emilio was part of a highly organized na- 



233 



THE FRANKLIN COVER-UP 



tional and international kidnaping ring. Stephens asked Bo- 
nacci, "What did Emilio tell you that he did for a living?" 

PB: Kidnap kids and took them to Las Vegas. 

RS: What kind of kids? 

PB: Any kid that he could get. 

RS: Does it matter if it's male or female? 

PB: Him, no, him he'd kidnap boys or girls. Main thing he'd 
kidnap was boys, though, 'cause he said he'd get more 
money for them. Emilio used to tell me all kinds of things 
like how they could get away with kidnaping kids and sell 
them out of the country. He said most of the kids were sold 
in Las Vegas at a ranch he took me to one time for an 
auction. I went with him to Toronto several times where 
boys were sold. I saw a few girls once in a while. He said 
virgins could bring as much as $50,000. They called the 

boys toys, used toys brought in money but not as much 

Most boys were sold out of America cause it's harder to 
find them. The men who bought them had planes and could 
transport them easily. 

Bonacci ran into Emilio again in March 1986, near Buena 
Vista, Colorado, on the second occasion he saw Johnny Gosch. 

Despite the astonishing new information from Paul Bonacci 
on the Gosch kidnaping, West Des Moines police "have not 
interviewed Bonacci and have no plans to do so," according 
to the July 21, 1991 Des Moines Sunday Register. "We are 
aware of what's going on," said Lt. Gerry Scott, in charge of 
the Gosch investigation. "We're not going to reinvent the wheel. 
This has been investigated in Nebraska. When things need 
investigating, here, they will be investigated." 



Bonacci also conveyed to Stephens specific recollections 
related to two other notorious cases-pedophilia and ritualistic 
abuse in Jordan, Minnesota, and satanism and child sacrifice 
near Bakersfield, California. 

In 1983 and 1984, Scott County, Minnesota prosecutor 



234 



"SO THE TRUTH WOULD NEVER COME OUT" 

Kathleen Morris investigated and began to prosecute a ring of 
child molesters centered in the town of Jordan. Child victims 
had testified about satanic rituals and the filming of children 
in sex acts. "The case involves the largest adult-juvenile sex 
ring in Minnesota history, authorities said," reported the Minne- 
apolis Star-Tribune on November 18, 1983. 

At least 30 children told police they had been molested. 
Morris brought indictments against 24 adults. People magazine 
of October 22, 1984 summarized, "The village harbored rings 
of adult sex abusers who incestuously victimized their own 
children and other children during ritualistic sex parties involv- 
ing sadism and bestiality. Some of the children described a 
bizarre sexual variation of hide-and-seek in which children 
who were 'found' were taken to a bedroom and abused." The 
children told of witnessing three ritualistic murders. 

Child care workers and psychologists found the children 
highly credible. Psychologist Michael Shea, who treated some 
of them, told People, "Children are not able to fantasize in 
such graphic detail about sexual acts which are outside their 
experience. And they certainly can't be coerced, or bribed 
or brainwashed into making statements about their parents." 
Minnesota psychologist Susan Phipps-Yonas, who also inter- 
viewed some of the children, told the Star-Tribune that she 
fully believed their reports: "It's not just the details that make 
them convincing, but the [emotional] effect behind the stories. 
They're extraordinarily upset when they recount these things. 
They'd have to be world-class actors to be so convincing if it 
wasn't true." Phipps-Yonas speculated that since the children 
talked about large sums of money changing hands, organized 
crime was likely involved. 

Morris indicted the ring's chief figure, 26-year-old James 
Rud, on 108 counts of child abuse. His parents, Alvin and 
Rosemary Rud, and his 17-year old brother were also indicted, 
as were several other people from the Valley Green Trailer 
Park, 35 miles outside of Minneapolis-St. Paul. Most of the 
abused children also lived in the trailer park. 

Like the Franklin investigators in Nebraska, Morris came 
under savage attack from media and the political establishment 



235 



THE FRANKLIN COVER-UP 

in her state. Under pressure, she ultimately turned the investiga- 
tion over to state Attorney General Hubert "Skip" Humphrey, 
Jr. To the horror of many, Humphrey soon released a 29-page 
report titled "Scott County Investigations," which closed the 
case, citing "insufficient evidence." Minnesota Governor Rudy 
Perpich then appointed a commission to investigate Morris! 
Humphrey named one of his political cronies, lawyer Kelton 
Gage, as "independent counsel" to present evidence against her. 
Yet in 1991, from prison in Nebraska, Paul Bonacci identi- 
fied by name, from pictures, some of the same individuals 
Morris had been investigating. Some of Bonacci's conversa- 
tions with Stephens about these events have been transcribed: 

RS: You know anybody else who hurts children or takes kids 
or sells them or takes pornography of them? 

PB: I don't know what their names are and they're all from 
mainly not even from 

RS: From this area? Where are they from? 

PB: Minnesota and California. 

RS: Do you know where or who? 

PB: ... in Minnesota there was one guy named James Rud. 
He lived with his mom and dad, cause I remember we went 
out to his place one time in a trailer. 

RS: And that's in Minnesota? 

PB: Yeah, that was in Jordan, Minnesota. 

A second exchange between Bonacci and Stephens, recorded 
on September 28, 1991, shed more light on the events in Jordan. 

RS: What do you remember about this little boy named Joey? 

PB: Joey? Oh, that's what I wanted to tell you about . . . 
Jordan, Minnesota. 

RS: Jordan? That's where he came from? 

PB: Well, he wasn't kidnaped, his parents let him go, 'cause 
his parents were friends with Emilio and they had some 
strange . . . 



236 



'SO THE TRUTH WOULD NEVER COME OUT' 



RS: It's okay. 

PB: That there's a bunch of parents, that are not just parents 
but other people in that town that were abusing kids. . .. 
Bob Bentz, that's the one I told you about that had the 
two [inaudible]. 

RS: And this guy's name was Bob? 

PB: Uh-huh, Bentz. 

RS: How do you spell it? Bentz. 

PB: B-e-n-t-z. 

RS: And he's in Jordan? When was this? 

PH: Mmmrnm, that was in '82. 

Stephens had asked Bonacci to draw up a list of both abusers 
and victims. Later in the same conversation, Stephens went 
through the written list out loud. 

RS: Okay. What do you have written here? What does this 
say? Who is this Bob? Is that his wife's name? Lois? Bob 
and Lois Bentz? They had three sons? Okay. This is the 
Bob you told me about? 

PB: Uh-huh [yes]. 

RS: And Joey is theirs? Okay, and Jim Rud is the guy who 
lives with his mom and dad at the Valley Green Trailer Park? 

PH: Yeah. 'Cause I remember one of the games we played 
was called hide and seek basketball. 

RS: Hide and seek basketball? How do you play that? You're 
not talking about regular basketball, are you? 

PH: No, it's sex . A lot of people lived in Jordan that 

were doing that [child abuse]. 'Cause when we were up 
there [inaudible] they tortured a couple [of children] that 
came in. 

Bob and Lois Bentz were tried for child abuse, including 
of their own three sons, in August 1984, and acquitted. How- 
ever, their acquittal left grave doubts in the minds of many in 
the town. Some incidents from the trial were featured in the 
People story: 



237 



THE FRANKLIN COVER-UP 

Among the children who testified against the couple was 
their 6-year-old boy, Tony, who told the court that his father 
had sodomized him and his brothers. Although the boy was 
confused over the meaning of the sexual terms, when a 
defense attorney asked if he feared that his father would 
abuse him again, the boy looked across the courtroom at 
Bentz and replied, "You won't do that no more, right?" 

During the grueling cross-examination, defense attorneys 
succeeded in shaking some of the young witnesses' stories 
by hammering away at dates, places and word meanings. 
However, a 12-year-old girl steadfastly refused to waver 
from her testimony. When a defense attorney accused her 
of lying, she snapped: "You're just helping Bob and Lois 
[Bentz] to get out of this stuff, this child-abusing stuff, I'm 
not lying, you guys are. It's the truth, they hurt us." Later 
she rushed tearfully into the arms of a social worker. 

Though the Bentzes got off in the Scott County case, James 
Rud plea-bargained. Before the case was scratched, he pleaded 
guilty to lesser charges. In 1978 and 1980, Rud had been 
convicted of sexually abusing children in Virginia and Minne- 
sota, respectively. 

On other occasions, Bonacci described ritualistic abuse and 
the sacrifice of a boy at a place nearBakersfield, California. The 
details of his testimony, including names, are consistent with 
the 1983-1985 investigation by Kern County, California Sheriff 
Larry Kleier into satanic ritual abuse there. Despite attempts by 
the state attorney general, John Van De Kamp, to discredit the 
Kern County investigation as based on "hearsay" and "hysteria," 
a grandj ury indicted seven people on 377 counts of pornography, 
child abuse and drug possession. They were convicted in a 1986 
trial and sentenced to a total of 2,600 years in prison, but a state 
appeals court overturned the convictions in 1990, on grounds of 
"egregious prosecutorial misconduct." 



Several months after becoming Paul Bonacci's attorney in 
the summer of 1990, I remarked to a friend, "You know, the 



238 



"SO THE TRUTH WOULD NEVER COME OUT" •_ 

more I find out about this case, the more I am absolutely 
convinced that drugs are a major part of it. Everywhere you 
turn, there are drugs, and on a huge scale. The kids report Alan 
Baer involved in bigtime drugs from California, Larry King 
has been reported as a major pusher, and Wadman's name has 
been strongly linked to drugs." 

Through the use of young boys and girls, Larry King was able 
to have a nationwide drug transportation network. It interfaced 
perfectly with his ability to compromise and blackmail politi- 
cians or businessmen. Having cocaine available could make it 
easier for Larry King to entice prominent people, after they 
got drunk, and then high on the drug, into sex with a teenaged 
girl or boy. 

According to the accounts of Paul Bonacci and Alisha Owen, 
Alan Baer was running a nationwide drug ring, and used chil- 
dren 18 or under as couriers. Once the children became 19, 
and thus could be tried as adults, Baer let them go. 

Senator Ernie Chambers observed to the Executive Board 
of the Legislature on December 19, 1988, just as the Franklin 
investigation was getting underway: 



My community is ravaged by drugs. We see the Omaha 
police picking up kids from 14 to 18-years old with a half 
an ounce or less of these narcotic substances and that is 
supposed to be fighting the drugs. These are nickel and dime 
pushers, not suppliers, not mid level suppliers. A few days 
ago the Douglas County Sheriff got together with some of 
the county sheriffs, one was from Sarpy, and they made a 
raid and they got a pound and a half of heavy drugs, some 
money and some weapons. They didn't tell the Omaha po- 
lice. And I talked to the Douglas County Attorney and I 
told him I was glad they didn't tell them because had the 
Omaha police been notified this drug bust would never have 
occurred, they would have told the individual, they would 
not have gotten a substantial amount of the drugs. These 
nickel and dime people in my community that they are 
arresting don't have the connections or the money to bring 



239 



THE FRANKLIN COVER-UP 



the amount of drugs into the City of Omaha that are coming. 
And certainly the little piddling amounts that are picked up 
by the police have no meaning or significance. When we 
wanted, as a community, to help organize and work with a 
task force of black officers to address the drug problem and 
the gang problem, Chief Wadman fought it tooth and nail 
and did not want it, wanted to deny that the problem existed. 
And I said the only reason that a police official would be 
opposed to this kind of action is because he knows something 
or he's part of it. 



One of Caradori' s informants stated that Wadman was instru- 
mental in bringing the drug-trafficking gangs, the Los Angeles- 
based Bloods and Cryps, into Omaha. According to a June 19, 
1989 report by Caradori's predecessor at the Franklin commit- 
tee, Jerry Lowe, members ofthe Bloods and Cryps were identi- 
fied by local police as driving Larry King's car. 



As soon as awareness dawned, that sexual and ritual abuse 
of children was happening in Nebraska, and that it was being 
protected from within the political and law enforcement estab- 
lishment, a resistance movement on behalf of the children took 
shape. In her famous interview on Geraldo Rivera's TV special 
on satanism, Kathleen Sorenson identified her group as Believe 
the Children. Later, friends of Kathleen were active in the 
Concerned Parents group, which urged that the testimony of 
Loretta Smith and others be investigated on its merits, instead 
of dismissed out of hand. 

Against the shroud of cover-up, imposed by the World- 
Herald in its treatment of the Franklin case, some newspapers 
showed the integrity to keep all aspects of the case alive in 
Nebraska. Foremost among these has been the Nebraska Ob- 
server, published by the Nebraska Citizens' Publishing Group 
and edited by Frances Mendenhall. 

While most of the national press dropped the Franklin story, 



240 



"SO THE TRUTH WOULD NEVER COME OUT" 

in the summer of 1990, Executive Intelligence Review sent an 
investigative team into the state to report on the case first-hand. 
Its July 27, 1990 article, "FBI covers up child abuse, murder 
in Nebraska," brought a rain of denunciations on the pages of 
the World-Herald, which made much of the fact that EIR was 
founded by the jailed economist and presidential candidate, 
Lyndon LaRouche. After an initial "no comment" from an FBI 
spokesman, Nick O'Hara's successor at the Nebraska-Iowa 
office of the bureau, Charles Lontor, took to the pages of the 
World-Herald on August 13, to denounce such talk of cover- 
up as "nonsense," and to say that the FBI did "not wish to 
become involved in a futile public debate with them [EIR] or 
anyone who may choose to support their efforts." 

It was my view, that the Franklin cover-up was so massive 
in Nebraska, that it could not be broken just inside the state. 
In 1991, the case did receive attention in the Italian weekly 
Avvenimenti and in Pronto, published in Spain. Both articles 
came from Italian journalists Giovanni Caporaso and Massimi- 
liano Cocozza Lubisco, a team that has produced many stories 
for Italian television. After their own May 1991 investigative 
trip to Nebraska, they wrote about the kidnaping and sale of 
children as "the market of horrors." They quoted Paul Bonacci 
and Roy Stephens at length. 

I was glad of the presence of other international observers, 
who came when the Schiller Institute, founded by Helga Zepp- 
LaRouche in 1984 and based in Washington, D.C. and Laatzen, 
Germany, organized an ad hoc human rights fact-finding mis- 
sion to Nebraska. In response to a Schiller Institute appeal, 
nine people from five U.S. states and three foreign countries 
constituted themselves as the Citizens' Fact-Finding Commis- 
sion to Investigate Human Rights Violations in Nebraska. 
Among them were the Reverend James Bevel, former close 
associate of Dr. Martin Luther King, Jr., an Austrian leader of 
the European Citizens' Initiative to Protect Life and Human 
Dignity, the president of the Ukrainian Political Action Com- 
mittee of the United States, and a clinical psychologist from 
Canada. They came from October 11 to 17, 1990, and during 



241 



THE FRANKLIN COVER UP 



that week, interviewed many witnesses, visited the Omaha 
FBI office, watched hours of videotaped testimony from child 
victims, and read mountains of documents. 

The Citizens' Fact-Finding Commission issued a report that 
denounced the "torture and murder-in-progress" of Paul Bo- 
nacci, and said that there was so little recourse through the law 
left in Nebraska, that an international spotlight needed to be 
shined on the systematic "violations of human rights" there. 

After these findings were published, one hundred fifty cler- 
gymen, civil rights leaders and other community leaders from 
throughout the United States signed a "Letter to the Citizens 
of Nebraska," which endorsed the findings and called on the 
Senate Franklin committee to pursue its investigation "at all 
costs." The World-Herald refused to print the Commission's 
findings and the endorsement letter, even as a paid advertise- 
ment. In an October 20, 1990 article by Bob Dorr, the paper 
attacked the independent fact-finders as "LaRouche Investi- 
gators." 

There and in subsequent articles, Dorr called upon the exper- 
tise of so-called "anti-cult" specialists from the Anti-Defama- 
tion League (ADL) of B'nai B'rith and the Cult Awareness 
Network (CAN), in attempts to rebut the Commission's work. 
Rev. Bevel came in for particularly strong attack by such de- 
fenders of the cover-up. 

Rev. Bevel was so horrified by what he witnessed during 
the short mission of the Fact-Finding Commission, that he 
moved to Nebraska for a period of months, to work with citizens 
resisting pedophilia and the cover-up of it. He was the target 
of death threats and physical attack in Omaha. 

At first I thought that Rev. Bevel must be crazy, or a radical 
trouble-maker. Why would a middle-aged man with a family 
to support take off and move to Nebraska in the middle of 
winter, to take up a cause that could guarantee him nothing 
but grief, and might get him killed? 

But as I watched him work and saw his dedication, I learned 
more about faith, hope, charity and truth from this one dedicated 
individual, than from all the priests, pastors and rabbis I have 



242 



"SO THE TRUTH WOULD NEVER COME OUT" •_ 

known. Rev. Bevel cared about one thing-children. Children 
were being abused and were going to be abused, unless some- 
thing was done. The more Bevel worked, the more he was 
condemned by the World-Herald for his efforts in the black 
community, particularly, to expose the sins. 

Rev. Bevel and others found there was a tremendous unspo- 
ken support among the people of Nebraska, for the victims of 
the child abuse ring. Radio call-in polls showed that Nebras- 
kans, by margins of up to ten to one, do not agree with the 
way prosecutors have handled the Franklin case or believe that 
the witnesses are hoaxers. 

During 1991, a newly-formed citizens' group called the 
Nebraska Leadership Conference mobilized a large number of 
people, hundreds of whom traveled to Lincoln for several large 
conferences. At two of the conferences, detailed background 
presentations on the exploitation of children and on the Franklin 
cover-up were made by knowledgeable people from many dif- 
ferent institutions and organizations in Nebraska. At a third, out- 
of-state specialists on satanic cults were given the opportunity to 
educate Nebraskans on the scope of the problem. The confer- 
ences turned into mass meetings, which rallied support for the 
victim-witnesses. 

In September 1991, the Nebraska Leadership Conference 
issued a pamphlet called "The Mystery of the Carefully Crafted 
Hoax," which documented many of the inconsistencies in the 
Douglas County grand jury's and other official versions of the 
Franklin case. 

After Alisha Owen's conviction, Frances Mendenhall's Ne- 
braska Observer devoted its July 12, 1991 issue to a dissection 
of the flaws in Alisha's trial, and related matters. One article 
was, "Owen Trial Was a Far Cry from Justice," in which 
Mendenhall reviewed such key issues as the contradictory be- 
havior of Troy Boner and the lack of any demonstrated basis 
for the central claim of the prosecution, that Alisha Owen was 
motivated by a desire for publicity. Other headlines included, 
"Evidence the Owen Jury Didn't Get to See," "Common Mis- 
conceptions About the Owen Trial," "Caradori Widow Ques- 



243 



THE FRANKLIN COVER-UP 



tions Fairness of '48 Hours' and "Bonacci Recalls Early 
Trauma," which drew out the implications of dropping the 
charges against Paul. 

Thousands of copies of that Observer issue have circulated 
in Nebraska. 

Many demonstrations of support for Paul Bonacci and Alisha 
Owen were held in Lincoln and Omaha, outside the facilities 
where they have been imprisoned. A group called the Children's 
Civil Rights Committee was active in these, and also began 
holding weekly prayer meetings in Omaha, in December 1990. 
The Children's Civil Rights Committee has been instrumental 
in efforts to reinstate the Legislature's investigation into the 
Franklin case. 

Another group that played a key role in 1990 and 1991 
efforts to crack the Franklin cover-up, by lobbying and literature 
distribution, was the Commonwealth Depositors Committee, 
led by Reuben Worster and Dr. Melvin Bahensky. A respected 
veterinarian, now in his eighties, Bahensky is legendary 

for his spirit and tenacity in fighting to expose the wrongs in 
the Commonwealth and Franklin cases. He always maintains, 
that they are one and the same. 



In October 1991, the Nebraska State Parole Board voted 
5-0 to parole Paul Bonacci, who has been serving a five-year 
sentence since 1989. On Hallowe'en, soon after a scathing 
World-Herald editorial against the decision, the board reversed 
itself. As Bonacci's attorney, I responded with the following 
press release: 

From beginning to present, Franklin has been a cauldron of 
cover-up skillfully executed by powerful and wealthy thieves 
and pedophiles. Punishment, destruction and even elimina- 
tion of those who would expose or try to correct the evil 
wrought by these individuals is the reward of child victim- 
witnesses and any who would aid those children. 

The perpetrators have corrupted institutions of govern- 
ment. Abetted and at times absolutely led by the Omaha 



244 



"SO THE TRUTH WOULD NEVER COME OUT" 

World-Herald they have systematically turned lies into truth 
and truth into lies. A "free" Paul Bonacci would continue 
to provide information which helps expose individuals and 
offenses involved in this cover-up. So, one way or another, 
they intend to eliminate Paul Bonacci-no matter what it 
takes. That is my very real fear. 

Therefore the World-Herald intimidated an already 
frightened and beleaguered parole board into effectively re- 
versing their original proper decision to allow this youth out 
of prison. If there is a God above, the Franklin cover-up will 
fail and the evil and individuals involved will be exposed. 
Meanwhile, the visible payoff to the Parole Board will be 
a glowing editorial in the Omaha World Herald. 

Right on schedule, the World-Herald came out on November 
3, 1991, with an editorial, "Vote on Bonacci Was Sensible." 
Flaunting its clout more blatantly than ever, the paper took 
credit for the reversal, attributing it to lobbying by "the press 
and others." 

I have often said that I wish I had never heard of the Franklin 
Credit Union, Larry King, or Paul Bonacci. I sincerely mean 
this. Why? Simply because I believe Paul Bonacci is telling 
the truth, and that our institutions of government have been as 
badly corrupted as that implies. 

If I still had the luxury of believing, as I once did, that the 
allegations of drug abuse, child abuse, pedophilia, theft and 
satanic cult activity were exaggerated imaginings of some over- 
active child and adult imaginations, then I would not have to 
do anything about Franklin. I could still be enjoying an income 
of $400,000 per year as a lobbyist, without having to work 
too hard, instead of being financially strangled as clients are 
intimidated away from hiring me, because of the Franklin con- 
nection. 

But I do know that it's true, and because of my upbringing, 
I have no choice but to plow ahead. 

Were there any reasons for me or others to be "afraid or 
concerned" about our lives? You make your own judgment, 
after I tell you about just one documented incident. 

At the height of the legislative Franklin investigation, when 



245 



THE FRANKLIN COVER-UP 



the Douglas County grand jury was also going full bore, I 
received a phone call in the middle of the night, from a close 
friend of mine in Omaha, who wanted to warn me that my life 
might be in danger. It was approximately a week after Gary 
Caradori died. 

"Why do you believe this?" I asked. "Are you sure you are 
not falling into a trap, overreacting to rumors?" 

"I don't know," answered Mary Kay Evans, a former cam- 
paign chairman of mine. "As you know, I am close to one of 
the University of Nebraska Board of Regents members, Dr. 
Robert Prokop. He called me and said he did not particularly 
like you or really ever get to know you, but that he felt he had 
an obligation, morally, to warn you." 

I knew of Dr. Prokop. Everybody in Nebraska did. 

Prokop had been chairman of the Board of Regents for many 
years. He had been a Democratic candidate for Governor of 
Nebraska just recently. And he was somewhat famous as a 
police pathologist, not only in Nebraska, but for many cities 
in the United States. 

"What did Prokop say," I asked, "that has you so con- 
cerned?" 

"He simply told me he was with the police, riding around 
talking to individuals on the street-which he does once a 
month, he said-and he learned that you were supposed to 
be the target of an assassination, because of your Franklin 
involvement and trying to force the investigation there. And 
he said that if I cared about you, that I should call you so that 
at least his conscience would be clear." 

The next day, I called Dr. Robert Prokop. I told him who 
I was and what Mary Kay had said. I asked him if Mary Kay 
was imagining things, or maybe just getting carried away a bit, 
because of all the concern and fear that Franklin was generating. 

Prokop was stern and nervous. "We really don't know each 
other," he said, "but I feel I have a moral obligation to tell 
you that when I was with the police last night, one of the very 
reliable informants we talked to advised us that you, John 
DeCamp, were supposed to be the 'first hit,' instead of Gary 
Caradori. In other words, Mr. DeCamp, you were supposed to 



246 



"SO THE TRUTH WOULD NEVER COME OUT" 

be eliminated first and then Gary Caradori if that was necessary. 
Now that Caradori has been killed, I was concerned that maybe 
they will go ahead with the next hit, which means you." 

"Are you serious?" I asked. "Do you really think there is 
even a remote possibility that could happen?" 

"I have no doubt it could happen," Prokop said. "I have 
been doing police work and autopsies for almost as long as 
you have been around. And I think I know the difference 
between conversation and serious talk. That's why I felt I had 
to warn you, even if it is not my area of responsibility." 

After warning me by phone, Prokop took it upon himself 
to make three separate trips to Lincoln from Omaha, to meet 
with the legislative Franklin committee and try to warn them 
of the seriousness of this threat. 

So, am I crazy to be concerned? Is Prokop crazy? Maybe 
so. But there have been too many surprises for people closely 
involved in Franklin, who ended up dead. 

I was prepared to take Bill Colby's warning seriously, when 
he sat me down and warned me that Franklin would never be 
dealt with without exposure in the national and international 
press. 



What is Franklin really all about? 

Was it theft by a black politician of forty million dollars? 
Is it child abuse? 

Is it just a big "homosexual party," as Mr. Fenner from the 
NCVA suggested to me? 

Is it laundering money for Iran-Contra? 

Were there murders to protect rich and powerful people? 

Were there politicians involved in the sins and the cover-up? 

Does it involve satanic cult activity and pedophilia, and 
exploitation of children in horrible ways? 

Why does the World-Herald care so much, and why has it 
gone overboard to damage and discredit anyone who would 
maintain that Franklin is more than a hoax? 



247 



THE FRANKLIN COVER-UP 



Why do people continue to believe, that there was and is a 
cover-up, by prominent wealthy businessmen and politicians? 

What I am going to offer now are my conclusions, my 
beliefs, based on the massive information I have seen and heard 
since Franklin broke in November 1988. 

First, I have absolutely no doubt, that prominent individuals, 
whom everybody in Omaha is familiar with, and many of whom 
have been named during the investigation, have engaged in 
long-term activity involving drug peddling and drug abuse, 
child abuse, and pedophilia, with particular attention to the 
abuse of young boys. 

That in the case of Larry King and the cadre of people he 
dealt with closely, boys and girls like Paul Bonacci, Troy Boner, 
Danny King, and Alisha Owen were used as drug couriers for 
a national program of illegal narcotics marketing. They were 
"throwaway" kids. Because they were teenagers and younger 
when they were doing this activity, they provided a perfect 
insulation blanket between the real drug czars, like Larry King 
or Alan Baer, and the law. 

Larry King was able to read people and compromise people 
through their weaknesses. And Larry King knew whom to cater 
to and to compromise. Compromise the heads of institutions. 
Cater to the secret sins of a law enforcer, so that when you 
need protection, that official is not in a position to do anything 
but sit and watch your illegal activities. Cater to the weakness 
for drugs, or 13 -year-old girls, or 9 -year-old boys, and then 
blackmail as required. 

Yes, based on what I have seen, much of which I am legally 
forbidden to reveal, I have no doubt that child abuse, pedophilia, 
illegal drug trafficking, murder, satanic cult activity, theft, and 
a host of other crimes were involved in what we have come 
to know as the Franklin scandal. 

Just as surely do I believe, that there was and is a cover-up. 

Just as surely do I fear, that nothing will be done about it. 

So, let me conclude my saying simply this: Bill Colby, you 
were right. It is too big. I am too small. They are too rich and 
powerful, and go up too high in business and government, for 
me to touch them or do anything about it. Yes, it is something 



248 



"SO THE TRUTH WOULD NEVER COME OUT" •_ 

that I should have abandoned long ago and faced up to the 
fact that good does not always triumph and that evil, with its 
many faces, does sometimes succeed. 

At least for a while. 

If this book is read and acted on by others, I hope it will 
be more than just what Colby called my "private parade." 



249 



APPENDIX A. 



SUSPICIOUS 
DEATHS TIED TO 
THE FRANKLIN 
CAS E 



At least fifteen people who were close to the Franklin case 
have died under suspicious circumstances. Many ofthese deaths 
were violent, others were unexplained. 

1. Bill Baker. He was a restaurant owner in Omaha, and a 
partner of Larry King in homosexual pornography operations. 
He was found shot in the back of the head. 

2. Shawn Boner. Brother of victim-witness Troy Boner, he 
died of a gunshot wound from "Russian roulette." 

3. Gary Caradori. Chief investigator for the legislative 
Franklin Committee, Caradori told associates days before his 
death that he had information that would "blow this case wide 
open." He died when his plane crashed on July 11, 1990. 

4. Andrew "A.J." Caradori died at the age of 8, in the 
plane crash with his father. 

5. Newt Copple. A confidential informant for Caradori and 
his investigative firm, Copple was a key behind-the-scenes 
activist fighting the cover-up of the Franklin case. Son of Com- 
monwealth Savings owner S.E. Copple, businessman in his 
own right, an ex-champion wrestler with no prior health prob- 
lems and parents who lived into their late eighties and nineties, 
Copple suddenly "died in his sleep" in March 1991, at the age 
of 70. 

6. Clare Howard. The former secretary of Alan Baer, who 



250 



APPENDIX A: FIFTEEN SUSPICIOUS DEATHS 

arranged Baer's pedophile trysts, Howard "died in her sleep" 
in 1991. 

7. Mike Lewis was a former caregiver for victim-witness 
Loretta Smith. He died of a "severe diabetic reaction" at the 
age of 32. 

8. Joe Malek, associate of Larry King and an owner of 
Peony Park, where homosexual galas were held. His death 
from gunshot was ruled a suicide. 

9. Aaron Owen, the brother of victim-witness Alisha Owen. 
He was found hanged in his cell in Lincoln, Nebraska, hours 
before one of his sister's court appearances. 

10. Charlie Rogers. A reputed homosexual partner of Larry 
King, Rogers said that he feared for his life, in the days before 
his death. His head was blown off with a shotgun, in what was 
ruled a suicide. 

11. Dan Ryan, an associate of Larry King. He was found 
strangled or suffocated in a car. 

12. Bill Skoleski. An officer in the Omaha Police Department 
who was believed to be keeping a file on Larry King, he died 
of a heart attack. 

13. Kathleen Sorenson. The foster parent for Nelly and 
Kimberly Webb after they fled the home of Larry King's rela- 
tives, Jarrett and Barbara Webb, she was an outspoken activist 
against satanism. Her death in a suspicious car crash is related 
in Chapter 15. 

14. Curtis Tucker. As associate of Larry King, he fell or 
jumped out of the window of the Holiday Inn in Omaha. 

15. Harmon Tucker. A school superintendent in Nebraska 
and Iowa, a reputed homosexual, his death had signs of satanic 
ritual murder. He was found dead in Georgia, near the plantation 
which Harold Andersen and Nebraska-Iowa FBI chief Nicholas 
O'Hara used for hunting. 



251 



APPENDIX B. 



BOBBY AND ME 



It is impossible to understand the Franklin scandal and its cover- 
up, without knowing the environment created in Nebraska 
when Robert Kerrey was governor, 1983 to 1987. It was an 
atmosphere of permissiveness for the rich and powerful, to do 
mostly as they pleased. 

Some of what follows, I probably should have said some 
time ago. Now, the prospect of Bobby Kerrey holding the 
highest office in the land means that I, who am knowledgeable 
about Kerrey in a way that probably no one but the closest of 
his cronies is, have no choice but to speak out. I could say 
much more, but I think the following episodes, in addition to 
what I have said in Chapter 6, are enough to shed important 
light on Bobby's character. 



I have always called him "Bobby" or "Roberto." Bobby has 
always called me "John-boy." Joseph Robert Kerrey and John 
William DeCamp. 

We go back about twenty years. 

Bobby had just returned from Vietnam with one and a half 
legs and the Medal of Honor and was trying to sort out his 
physical pain and mental bitterness toward the Vietnam experi- 
ence. I came back from the Nam about a year later and went 
almost directly into the Nebraska Senate as one of the youngest 
state senators in the United States. 

Bobby had been aNavy lieutenant on special duty in Vietnam 
with the SEALS. I had been an Army infantry captain in the 



252 



APPENDIX B: BOBBY AND ME 



south, in the Mekong Delta, on special assignment to John 
Paul Vann and a program called CORDS, which was run by 
then Deputy Ambassador to Vietnam, William E. Colby. Colby 
would later become head of the Central Intelligence Agency, 
under Presidents Nixon and Ford. I functioned as an infiltrator 
and analyst for CORDS, which in fact was more CIA than 
anything. Officially, CORDS was the pacification program. But 
that's another story. 

In the early 1970s, I was aware of Bobby because of his 
war protest activities and his Medal of Honor. He was aware 
of me because of my high profile and controversial activities 
as a state senator. 

One of the first things I did in Nebraska, following my return 
from Vietnam, was to sponsor a legislative resolution, which 
some viewed as a war protest, but which in reality was an 
attempt to open dialogue on the Vietnam War issue and to 
educate the politicians in the United States as to what was 
really occurring in Vietnam. 

The essence of my plea in the legislative resolution was 
this: Let us win or get us out of this war. Do not keep us in 
the position of not being allowed to win and not being allowed 
to lose, swinging in the wind. 

For the first time in its 100-yearhistory, the Nebraska Legis- 
lature voted not to allow any discussion on a resolution. It also 
forbade any hearing on the resolution to be held within the 
walls of the Nebraska State Capitol. This was how volatile this 
issue was back in 1971, and how adamant the elected officials 
in Nebraska were against anybody daring to question the propri- 
ety or value of the Vietnam War. 

I was hurt and discouraged by this action and what I viewed 
as the stupidity of the Legislature, in refusing to want to learn 
about the issue. As I sat at my Senate desk, licking my wounds 
after the vote to ban any hearing on the topic, Lincoln Star 
reporter Don Walton came up. 

"Pretty discouraging, wasn't it?" Don asked. 

"Yeah," I muttered angrily, "these bastards think they can 
suspend the First Amendment by some vote of this legislature 
that effectively says the Vietnam War does not even exist. No 



253 



THE FRANKLIN COVER-UP 



wonder they call them hayshakers. They love to wallow in 
their own ignorance. Sad thing is, they might actually learn 
something about the Vietnam War-they might even learn to 
understand why there are war protests." 

Don Walton bent over my desk and whispered in my ear, 
so no one standing around would hear. "The way I read that 
resolution the Legislature just passed," Don said, "was that 
they were not allowing any discussion on your resolution to 
occur inside the walls of the State Capitol. I did not see anything 
in that resolution that said you could not hold a hearing outside 
the Capitol, on the front steps." 

Don smiled. I perked up. In a flash, I knew what he meant. 

Defy the Legislature. Hold a hearing of our own right on 
the steps of the Capitol. Invite one and all to come and partici- 
pate. Have any senators attend who wanted to. Let the others 
chicken out if they wanted, but make sure everyone got counted. 

And that is exactly what I did. I announced the hearing 
would take place on the "north steps of the Nebraska State 
Capitol." The press did the rest. 

On the day of the hearing, the Capitol steps were barren of 
people, except for more law officers, undercover police, FBI 
agents, and CIA operatives than had ever been assembled in 
Nebraska at one time. The only senators who dared to come 
sit on the steps of the Capitol to participate in the hearing and 
listen to testimony were: Senator Terry Carpenter, the firebrand 
from Scottsbluff, who had gained national attention by nominat- 
ing a non-existent "Joe Smith" for President at the Republican 
National Convention years ago, to mock the nomination process 
at conventions; Senator Ernie Chambers, who has gained state, 
national, and international attention for his unwavering defense 
of the rights of African- Americans; Senator Pol. Morgan, now 
Mayor Morgan of Omaha; Senator Wally Barnett, who later 
became Nebraska State Fire Marshall; and myself, Senator 
John DeCamp. 

As we five sat there at our make-shift hearing table on the 
steps, I felt disappointed. We were going to be made fools in 
front of the state and national press, because of the failure of 



254 



APPENDIX B: BOBBY AND ME 



the people to care enough to show up for the hearing. And I 
was going to be the biggest fool of all. 

Then we heard a distant rumble. Slowly it grew louder. As 
we looked north from the Capitol steps, we could see the street 
filled by a mass of human beings moving straight toward us. 

It was the most moving sight of my life. There they were, 
several thousand people marching on the Capitol, covering the 
street for blocks behind the leaders. Men in wheel chairs who 
had lost limbs or worse in Vietnam; combat veterans who came 
back shattered in spirit or mind, who had been cynical about 
everything but afraid to express it; students from the University 
of Nebraska by the thousands; and businessmen and housewives 
by the hundreds. 

In the front, leading the parade, was a young war hero named 
Bob Kerrey, 



The event turned out to be the largest hearing ever held by 
the Legislature, up to that time. As ideas were shared, those 
who supported the war and those who opposed it, including 
many on both sides of the issue who had fought in it, came 
together for the first time and communicated. It was awesome. 

Part way through the hearing, a group of Vietnam War 
veterans moved up to the podium and began depositing medals 
they had earned for acts of heroism. This was their way of 
repudiating the war, and for them it was a catharsis. 

Years later, there were rumors that Bob Kerrey was one of 
those who deposited a medal in the "coffin" some of the vets 
brought to the hearing to put the medals in. Kerrey has always 
denied this. 

In 1982, when Bobby was running for governor, his partici- 
pation in the event became an issue with potentially damaging 
political consequences. At that time, I discussed the matter 
with Bobby, as he sought to minimize the damage his opponent, 
Governor Charles Thone, was doing to him for having attended 
and thrown away his medal. 



2SS 



THE FRANKLIN COVER-UP 



I remember Bobby's pleading discussion with me in my 
office at the Capitol, as the issue heated up. I had publicly 
admired and praised him for his participation because, back in 
1971, it was a sign of courage. Now Bobby pleaded, "For 
God's sake, you're killing me. Just let the issue drop. Besides, 
I don't think I was even there." He declared that he had been 
in Peru visiting his brother at the time of the hearing, so he 
could not have been there. 

I was dumbfounded. But as Bobby grew more insistent that 
he had not been there, I started to become confused about the 
matter myself. I complied with his request, taking his word, 
and publicly said that I must have been mistaken to say that 
Bobby attended the hearing. 

Recently, I decided to see what records there were of that 
special hearing, twenty years ago, where Bobby now said he 
was not present. In the files of the Lincoln Journal, I found a 
May 6, 1971 article, which identified Congressional Medal of 
Honor winner Bob Kerrey as one of the main speakers at 
the rally. The article said, "A Nebraska native and Vietnam 
Congressional Medal of Honor winner, Robert Kerrey, in a 
prepared statement said that the 'Viet Cong or North Vietnam- 
ese troops are angelic compared with the ruthless Americans.' " 

I checked the files of the World-Herald. They also report 
Bobby as a speaker at the hearing. Two days after the event, 
Bobby wrote a letter to the Journal in which he said that what 
he meant was that" . . . the evidence of atrocities in Vietnam 
is sufficient to support an argument against all wars " 



Over the next several years, we had little contact. Bobby 
entered the restaurant business and-with a little help from a 
law I helped amend, that let an individual obtain more liquor 
licenses than were allowed until then-began to do quite well. 
He became a significant personality in Lincoln, the state capital. 
Meanwhile, I was having more legislative success than I had 
dreamed possible. 

It is quite something, to look back at the headlines from 



256 



APPENDIX B: BOBBY AND ME 



that era, in the same World-Herald that today is trying to 
destroy me for defending the Franklin victims: " 'Gladiator' 
DeCamp is Tall in Capitol Arena: Fast-Moving Senator Wields 
Vast Influence" -from March 26, 1978. "Kingpin or Carpenter- 
like, John DeCamp Wields Power in Legislature"-from April 
1978; here, C. David Kotok chronicled what he called my "rise 
to legislative kingpin." My influence on events was such, said 
Kotok, that "The 1978 Legislature even has been dubbed 'the 
DeCamp session' by some." The authors of those two articles, 
Kotok and Frank Partsch, today write most of the World- 
Herald's editorials, many of which have viciously attacked me. 

Bobby and I next had quite a bit to do with each other in 
1982, during the Nebraska gubernatorial race. I was there when 
the state's leading powerbrokers anointed Bobby as the next 
governor, in fact it was I who suggested they anoint him. That 
is a fascinating story, but let me first give a little necessary back- 
ground. 

Starting in the mid-1970s, a debate over the structure of 
Nebraska's banking industry emerged as the issue which would 
dominate state politics for a decade. Officially dubbed "Multi- 
Bank," the issue was a turf battle of monumental proportions, 
over who was going to own the banks in Nebraska, and what 
competition was going to be allowed in the purchase of exist- 
ing banks. 

On one side were the "Independents," who advocated owner- 
ship of banks by individuals. The Independents were very 
strong in Nebraska, as in many rural states. On a per capita 
basis, as I recall, we probably had more banks than almost any 
other state in the United States. 

On the opposing side were the "Big Banks," particularly 
those based in Omaha, the state's largest city. Nebraska law 
forbade holding companies, which could own many banks. If 
holding companies were allowed, the big banks would naturally 
start buying up a lot of small banks-"Multi-Bank." That was 
the issue. 

In 1976, I won the chairmanship of the Senate Banking 
Committee, which controlled banking, finance and insurance 
in Nebraska. That is, I thought I won it. I know today that I 



257 



THE FRANKLIN COVER-UP 



was merely the bright young legislator selected by powerful 
men in business and politics, to aid their efforts to change the 
banking structure in Nebraska. 

I believed at the time, that the banking structure changes I 
was proposing, which would allow the big banks to get bigger, 
were good for Nebraska. I thought they were necessary, as 
well as probably inevitable. 

It was this battle over bank structure, that next brought 
Bobby and me together. 

In 1978, the banking forces I supported determined that we 
had likely assembled enough senators in the recent election, 
to pass the Multi-Bank structural changes. But we had to be 
sure that if we passed the legislation, we could get it signed 
by the governor. A veto would be fatal. It was possible to get 
a majority of votes to pass the legislation, but electing enough 
senators to override a governor's veto might take two or three 
elections, or forever. 

I I would be much faster and cheaper, the big boys concluded, 
to control the governor. 

Accordingly, at a very private meeting between a Nebraska 
congressman named Charles Thone; the state's then-premiere 
lobbyist, Jim Ryan; Omaha National Bank President and CEO 
John Woods; Omaha National Vice President Don Adams; and 
myself, certain agreements were reached. The meeting was 
held at John Woods' personal residence in Fair Acres, Omaha, 
in a quiet "servants' quarters" outside the main house. The 
understanding was clear, that we would work to make Charles 
Thone governor. And Charles Thone, who said he strongly 
believed in our Multi-Bank bill, gave his iron-clad pledge that 
he would sign it, just as soon as we could "put it on my desk." 

But the best laid plans of mice and men go oft awry, and 
that is what happened with the new governor, Charles Thone. 

Charlie liked being governor. Charlie was cautious. Charlie 
did not want to do anything that made anybody unhappy. The 
last thing Charlie needed after being in office for a couple of 
years, was to have a controversial issue on which he had to 
play King Solomon, which would make one or another powerful 
group hate him, no matter what he did. 



258 



APPENDIX B: BOBBY AND ME 



Multi-Bank was exactly that. The two contending groups of 
banks financed almost all major political races in Nebraska- 
on both sides-for almost a decade. Politicians would pledge 
their support to either the Independents or to the Big Banks, 
led by Omaha National (later to merge with First National of 
Lincoln to become FirsTier), as the first step toward running 
for public office, particularly for the Legislature. 

Some politicians came to believe that they would never 
really have to cast a vote on the issue, because there would 
never be enough votes to get the bill passed. Therefore, they 
could promise to support Multi-Bank, without having to worry 
about a final vote or signature on the bill. Charles Thone was 
apparently one of those. As long as the bill never reached his 
desk, he could promise till the cows came home that he would 
sign the bill, but he would never be held accountable. 

But on a fateful day in 1980, something happened in the 
Legislature that nobody dreamed possible. It had never hap- 
pened in the first one hundred years of Nebraska history. There 
was a tie vote, 24 to 24. Nebraska's unicameral Legislature 
has 49 Senators, but on this day, Senator Ernie Chambers 
decided to sit on his hands, rather than vote for what he regarded 
as one bunch of evil-doers against another. Then, in an act of 
dubious legality, Lieutenant Governor Roland Luedtke cast the 
deciding ballot in favor of the Big Banks. Never before had a 
lieutenant governor voted on anything. 

Governor Charles Thone was in a dilemma. If he signed the 
bill, he incurred the wrath of the powerful independent bankers. 
If he did not, he betrayed the promise he had made to John 
Woods and the Omaha business community, who were intent 
on this piece of legislation. 

Charlie did the smart thing. He left town and criticized 
Luedtke for having improperly voted for the bill. Luedtke re- 
sponded by putting on the hat of Acting Governor, and signed 
the bill into law. 

The story did not end there. On instructions from Attorney 
General Paul Douglas, who favored the independent bankers, 
the newly passed law was not entered into the statutes. It was 
as if it had never passed. 



259 



THE FRANKLIN COVER-UP 



In the next year's legislative session, the Big Bank forces came 
back with guns blazing. Led by me on the floor of the Legislature 
and in the Banking Committee, we marched the legislation 
slowly but surely through three legislative votes and to a final 
showdown with Governor Thone. We had a bare majority, but 
nowhere near enough votes to override a governor's veto. 

On a spring day, as Charlie was dreaming of an easy reelec- 
tion, as the newspapers were saying that he was unbeatable, 
being a Republican governor in a Republican state, who had 
done nothing really right or really wrong, we laid the newly 
passed legislation on Charlie's desk. 

John Woods sent clear messages to Charlie Thone, that he 
was expected to live up to his promise to sign the legislation. 
But the Independent Bankers had their own ace in the hole. 
They had the leading independent banker in the state meet one- 
on-one with Charlie and "explain the facts of life." 

The facts were these: 1 . That if Charlie signed the legislation 
he would be politically dead, because ... 2. The Independent 
Bankers would organize a referendum on the newly passed legis- 
lation and put the issue on the ballot in the next election, where 
... 3. As Charlie, we and everybody else knew, it would almost 
certainly be defeated, because the voting public was inclined to 
support the Independents. Charlie would be done for. 

Charlie got the message. He vetoed the bill. 

With that veto, Charlie's political doom was sealed, and the 
door was opened for Bob Kerrey to be the next Governor of 
Nebraska. Until then, Bobby was still frying hamburgers at his 
restaurant, and was no closer to the governorship, to Debra 
Winger, or to Hollywood than the local movie theater. 

John Woods was adamant. So was super-lobbyist Jim Ryan. 
Charlie Thone must be eliminated. 1 1 was time to come up with 
other candidates. 

To my suggestion that they seriously consider supporting 
me for Governor, the answer was unanimous. I was too contro- 
versial. I had too much political "baggage." I would not like 
being governor. I was too effective as a legislator and besides, 
as everybody knows, except for signing bills, the Governor of 
Nebraska is not as powerful as independent legislators. 



260 



APPENDIX B: BOBBY AND ME 



What they said was probably true. They wanted me as their 
power broker in the Legislature. 

I suggested we get behind a young man named Bob Kerrey. 
For a couple of years, there had been talk about Bobby. I had 
even dreamed, as I told Bobby many times, of running for 
Governor, with Bobby as Lieutenant Governor. I knew others 
were encouraging Bobby, too. 

From that meeting on, it was a done deal. Jimmy Ryan 
and Omaha National Bank Vice President Don Adams were 
assigned the task of meeting with Bobby privately to sort out 
whether he would support Multi-Bank legislation. 

Bob Kerrey filed as a candidate. A lot of people found it 
remarkable, that Democrat Bob Kerrey had the heavy support 
of the normally totally Republican Big Bank establishment. 

In November 1982, Kerrey became Governor of Nebraska. 
His first public appearance as Governor was to testify before 
my Banking Committee for Multi-Bank. Shortly thereafter, he 
signed the bill into law. 



Though the support of John Woods and the Omaha business 
community was the most critical factor in Kerrey's election, 
there was another force in Nebraska politics at the time, whose 
support was believed to be practically indispensable to winning 
the election. This was the pro-life movement. 

The vocal head of the pro-life group, Senator Bernice Labedz 
of Omaha, was more than just another state senator and more 
than just another pro-life leader. She was the matriarch of the 
Democratic Party. She was close friends with both of Nebras- 
ka's U.S. Senators, J. James Exon and Edward Zorinsky, for 
each of whom she had worked as office manager. Her support 
for a candidate guaranteed tens of thousands of votes. 

Bernice wanted to support Bobby Kerrey, but she was not 
going to support anybody who was not pro-life. Bobby knew 
he needed to do whatever he had to, to win her support. Only 
with Bernice on board, and with the backing of the Big Bankers, 



261 



THE FRANKLIN COVER-UP 



could Bobby do the impossible-win election as a Democratic 
governor, in a solidly Republican state. 

Bobby wrote a letter, for distribution as a true representation 
of his stand on the abortion issue. 

Dear Bernice, 

In the months ahead, your advice and support will be 
critical to my ability to provide new leadership for our State. 
Your courageous leadership in advancing respect for human 
life, promoting a strong family and a decent society, has 
been an inspiration to me as well as thousands of our fel- 
low Nebraskans. 

We have a common commitment to use our God-given 
abilities to defend and protect the sanctity of human life. 
There is no value I hold more dear than the conviction that 
every society should have as its first priority the protection 
of the life of its members 

Since becoming a candidate for Governor, I have consis- 
tently stated my opposition to abortion. As recently as May 
14, 1982, in both the Omaha World-Herald and the Lincoln 
Journal, I stated, "I find abortion to be morally repugnant." 
It was in the Omaha World-Herald on May 14, 1982, that 
I also stated clearly that my position was not "pro-choice." 

I believe the unborn to be human life and entitled to all 
the protections the State can legally offer for the preservation 
of life . . . 

I believe there are many important challenges that face 
us over the next few years. Reducing the number of abortions 
in our State and working with you toward the elimination 
of the need for even a single abortion will be of a highest 
priority. I am confident working in partnership with you in 
the years ahead will be one of the most rewarding experi- 
ences of my life. 

Best wishes, 

(signed) Robert Kerrey 

Following her rule that "a man's word is his bond," Bernice 
rolled out the political machine of the pro-life movement, in 
favor of Bobby and away from Charlie Thone. 

But in 1991, when Senator Bob Kerrey decided to run for 



262 



APPENDIX B: BOBBY AND ME 



President of the United States, the political winds had changed. 
Polls showed that only a candidate who would have the support 
of the pro-choice movement, stood a chance to beat George 
Bush. 

Bobby's first substantive act in his presidential campaign 
was to repeat a pattern I had seen during the years I worked 
with him. He repudiated everything he had previously said 
on the subject of abortion, acknowledged that he had been 
essentially fibbing in his pro-life statements, and admitted that 
he had given the previous false commitments purely for the 
purpose of getting elected. 

Campaigning in New Hampshire, Kerrey was quoted in the 
October 17,1991 World-Herald, regarding his letter to Senator 
Labedz: "It was a political act, yeah, and an act about which 

I feel very little pride The whole issue of not just abortion 

but many of the other emotional issues in 1982 were extremely 
difficult. I didn't know what public policy was for certain, 
should be for certain, and-as a result-I was all over the 
map." 



The Multi-Bank legislation was not Governor Robert Ker- 
rey's only foray into state banking law. In 1983-84, the state's 
banks were experiencing severe problems. In the summer of 
1984, Kerrey called a special legislative session to deal with 
these problems, but specified that it would not deal with the 
most notorious of them, Commonwealth, whose collapse he 
himself had precipitated with his infamous press statement of 
October 31, 1983. 

As the Legislature convened, however, Kerrey expanded the 
session to handle a completely new proposal of his own crafting, 
which did bear on Commonwealth and State Security. Kerrey's 
crony Bill Wright was involved. 

Kerrey's new proposal was for a special form of interstate 
banking, in which only one out-of-state banking group would 
be allowed to take over Nebraska financial institutions. It would 
be arranged so that this single out-of-state group, a Colorado- 



263 



THE FRANKLIN COVER-UP 



based combine with which Kerrey's associates were secretly 
working, would quietly take over Commonwealth and State 
Security, in return for the interstate banking monopoly. 

I had been sponsoring legislation to allow legitimate inter- 
state banking, but this was not legitimate. It was clear to me 
that the reason for the Kerrey administration's approach to 
Commonwealth, was to cover up a multitude of sins related 
to State Security, owned by Kerrey's intimate Bill Wright. 

I met with Bobby. We talked intensely. I made clear that I 
would support a competitive and reciprocal interstate banking 
proposal, which I thought would help all Nebraskans, not one 
that would be used to bail out individuals involved in what I 
felt was corruption. I mentioned for the first time to him, face 
to face, the role of his friend and adviser Bill Wright. 

When we ended our discussion, I thought Bobby would 
abandon his idea, and accept an interstate banking proposal 
along my lines. A legitimate interstate bank bill, however, 
could not be used by Bobby and his friends for their personal 
purposes, related to Commonwealth and State Security. From 
that standpoint, Kerrey, directed by Bill Wright, had to push 
through his peculiar form of interstate banking. 

Led by his chief of staff, W. Don Nelson, Kerrey lined up 
enough votes to bypass my Banking Committee and railroad 
his bill through the Legislature and onto his desk where he 
could sign it. Or so he thought. 

They had their votes lined up. It required 25 of the 49 to 
pass the legislation. Most senators knew less about the legisla- 
tion than a sow knows about Sunday. But by using the most 
traditional political methods, carrot and stick, the Kerrey ad- 
minstration had gotten commitments from twenty-six senators. 
They were ready to roll. 

Roll they did, using the most powerful lobbyists and the 
heaviest pressure the administration could put on. Through a 
technicality, I was able to stop them dead in their tracks. I 
invoked a procedural ruling, which forced them to have thirty 
votes to ever get to a vote on the bill itself. They had twenty- 
six votes, not thirty. Bobby was angry. 

Immediately after the vote, I left for the Republican National 



264 



APPENDIX B: BOBBY AND ME 

Convention in Dallas. When I got there, reporters were calling 
me for my response to Bob Kerrey's latest action. 

"What action was that?" I inquired. 

"Bob Kerrey has declared you a 'non-person' whose exis- 
tence he will no longer recognize in any way," they said. 

"How can you declare somebody a ghost?" I asked. "How 
does Bob Kerrey think he has the authority to declare me a 
'non-person'? What planet is he living on that he thinks he 
has this incredible power?" 

I thought for a minute. Bobby was riding as high as any 
governor ever had in Nebraska. Movie star Debra Winger was 
now living in the mansion with him part time. All Nebraska 
was in love with Bobby and Debby. Camelot was here, and 
Nebraskans were lapping it up. There were pictures of Bobby 
fluffing up a pillow, smiling and saying, "Just fluff up your 
pillow and dream about it "-his response when asked what it 
was like to date Debra Winger. 

I knew the press was in love with Bobby, and that anything 
I said had to be simple and not susceptible of distortion. "Bobby 
has to learn that there is more to being a governor than macho 
and movie stars," I told the press. 

Later, when I returned to Lincoln from Dallas, I learned 
from a close friend of mine and of Bobby, a prominent lobbyist, 
that immediately after the legislative vote in which I stopped 
his banking proposal, Bobby stormed out of the Governor's 
office and down to the doors just outside the Legislature, where 
he yelled out a threat: 

know you lobbyists workedfor John DeCamp to stop me 
on this. Well, I promise you one thing. DeCamp is 'dead meat. ' 
Do you hear me? DeCamp is 'dead meat.' I mean it!" 

When I was an infantry captain in Vietnam, the phrase "dead 
meat" was well known. It was what a soldier, usually an enlisted 
man, threatened an officer with just before "fragging" him. 
"Fragging" was a live grenade tossed into the tent, living quar- 
ters, or restroom facility of another soldier, most commonly 
an officer. 

Live grenades usually kill or maim people. Bobby knew 
that. His foot was most probably blown off by a live grenade 



265 



THE FRANKLIN COVER-UP 

that either the enemy threw or, as he himself has indicated, 
one of his own men accidentally dropped near him. Originally 
no one dreamed Bobby would be recommended for a Medal 
of Honor. Recently disclosed records show that as the Pentagon 
attempted to "popularize" the war, the word came down to 
create more heroes, to recommend more wounded for medals. 
Since there were more places to fill on the list, Bobby's name 
suddenly popped onto the bottom of it. This may be a crude 
way of putting things, but since the Medal of Honor is being 
cited by the press as the apparent best evidence of Bobby's 
qualifications to be President, it is legitimate to discuss it. And 
I do not think Bobby would deny this. 

In 1984, Bobby knew that this lobbyist would deliver the 
message that I was "dead meat," which he did. It occurred 
to me that I might be dealing with an emotionally disturbed 
individual. I had no doubts, as to how important the legislation 
was to help bailout and cover up the State Security scandal, 
in which Bobby and his friend Bill Wright were involved. And 
I knew how detrimental such legislation would be to the rest 
of Nebraska's million and a half citizens. 

A governor or legislator does not go completely nuts over 
a proposal the way Bobby did, unless he has something personal 
at stake. And I was well aware of what Bobby and his friends 
had hanging on their interstate banking plan. 

The more I learned about State Security, the extent of the 
thievery that had occurred there, and the fact that the publicity 
about Commonwealth was being used as a smokescreen to 
protect State Security from a deeper probe, the more at odds 
Bobby and I became. 

As I kept the heat on with continual demands for an investiga- 
tion of State Security, Bill Wright left town. When the press 
confronted Kerrey as to why Wright was gone, an angry Kerrey 
snapped, that Bill Wright was "driven out of town by John 
DeCamp." 

Finally, the Legislature agreed to allow my Banking Com- 
mittee to investigate the State Security situation. Eight hundred 
pages of committee investigation record what happened, and 
I have covered the highlights in Chapter 6. 



266 



APPENDIX B: BOBBY AND ME 



This investigation did not get well under way until the final 
year of Kerrey's governorship. It is my belief, that the reason 
Robert Kerrey did not run for reelection, was because of this 
investigation and where he thought it would lead. 

The best evidence I can give of this, is what happened after 
the November 1986 election. Kerrey did not run for reelection. 
I was defeated for reelection to the Legislature. 

Bobby and I sat down for a heart to heart talk. 

I had not yet issued the committee report. I had determined 
to wait until after the election, so that it would not appear that 
I was using it as a campaign tool. Bobby wanted to know what 
I was going to say about him in the report. 

"As far as I am concerned," I told Bobby, "I have no reason 
to go after you. You have already been hurt enough, by having 
to drop out of the Governor's race. I have no reason to pick 
on you, because it was really Bill Wright who masterminded 
the State Security swindle, though you obviously played a role 
in it. I am not out to hurt you. We both have been hurt enough 
and blamed enough." 

As far as I was concerned, Bill Wright was the key villain, 
and that is what I said in the State Security report. Perhaps I 
felt a bit sorry for myoid friend who left half his leg in Vietnam. 



Two years later, Bobby and I had occasion to get together 
again for some very serious business. 

I received a request from a close friend of mine, a lobbyist, 
that Bobby wanted to meet with me privately to discuss some- 
thing before he made his decision on running for the United 
States Senate. We met in the lobbyist's office, for a long discus- 
sion. "Are you going to run?" I quizzed him. 

"I don't know. You think I should? What are you going to 
do if I do?" 

"You mean," I said, "am I going to try to hurt you?" 

"Yeah, I guess that's what I mean. What are you going 
to do?" 

"Bobby," I said, "I told you before that I think State Security 



267 



THE FRANKLIN COVER-UP 



was one terrible scandal, with thousands of victims. I believe 
absolutely Commonwealth was a cover-up for State Security. 
But I don't think you were the main perpetrator of it. Sometimes 
we can be the victim of our own friends," I told him, somewhat 
charitably. get in so deep before we even know it, just a 

degree at a time, trying to help this guy or protect that one 
from embarrassment. That's what got Nixon in Watergate . . . 
trying to protect his friends. I truly believe Nixon did not know 
what the blazes was going on, but he was already in so deep, 
he had to take the fall for all the others because he was the 
'officer in charge.' 

think you did wrong in handling the whole thing-Com- 
monwealth and State Security, but you weren't the mastermind. 
Bill Wright was. That I know, despite your denials. 

"But," I continued, "just so you know exactly what I am 
going to do, so that you do not have to be looking behind your 
back all the time, here is exactly what you can expect: 

"First, I will not do or say anything publicly that will hurt 
you. You had your punishment already, having to drop out of 
the governor's race. 

"Second, with respect to the State Security issue specifically, 
and Bill Wright and all the thefts and crimes and cover-ups I 
know and believe occurred there, I will say nothing more than 
to tell people they can look at the official reports. 

"In short, Bobby, I will do nothing to hurt you." 

Then I was pressured and begged, by the highest elected and 
unelected officials of the Republican Party in Nebraska, to 
"trash" Kerrey during his U.S. Senate race, by making public 
everything I knew about him. Governor Kay Orr herself appealed 
to me to speak out. I refused, not just once, but again and again. 
With hindsight, I believe I should not have stayed silent. 

Ultimately, someone hired a writer named Jack Hart, to go 
through the records of my legislative investigation and write 
a series of articles to establish the extent of the Commonwealth! 
State Security scandal and the culpability of Robert Kerrey. 
Hart's articles were essentially accurate, as far as they went, 
and I have quoted from them in Chapter 6. 

I lived up to my promise to Bobby completely. And when 



268 



APPENDIX B: BOBBY AND ME 



the election was over and Kerrey had secured his U.S. Senate 
seat, a hand-written note from Bobby confirmed that fact. 



So, why make an issue of Kerrey and Commonwealth and 
State Security now? 

Because too much is at stake. Patterns associated with Kerrey 
from his earliest days in public life, which were accentuated 
in the Commonwealth/State Security affairs, are being repeated 
now in the Franklin matter, and have the possibility of being 
amplified onto the national level, if Robert Kerrey became Pres- 
ident. 

What are those patterns? 

1. Abuse of public positions for one's own financial benefit. 
This is an invariant of Kerrey' s career, from his first appearance 
in student politics at the University of Nebraska in 1964-65, 
where he was censured by the Student Council for pocketing 
profits from a Student Council program he was in charge of. 
We saw the same thing again in Commonwealth/State Security 
and the NIFA loan scam. 

2. Shifting political position 180 degrees with the prevailing 
winds. When it was fashionable to be against the Vietnam War, 
Kerrey led the parade. When it became a political liability, he 
chucked his opposition overboard, and lied about it. When he 
needed votes and he could get them by denouncing abortion, 
he did so. When he thought the best way to get votes was to 
be pro-abortion, he embraced that position. In the lead-up to 
the Gulf war, Bobby was strongly against it. When it was 
clear that the war was popular, Bobby decided he had been 
"uninformed" before and switched his stance. 

I saw this happen so many times, I used to call him "Flip- 
flop Bobby" to his face. 

3. Acting as a puppet of forces behind the scenes. Bobby 
got his start in political life because John Woods and the Omaha 
business community anointed him to pass their Big Banks bill. 



269 



THE FRANKLIN COVER UP 



While governor, he danced to the tune called by them and by 
Bill Wright. Today he is controlled by a small circle which 
includes: John Gottschalk, publisher, Omaha World-Herald, 
and Kerrey business partner; William Wright, the individual 
who milked State Security's depositors of millions; Joe R. 
Seacrest, owner and publisher, Lincoln Journal newspaper; 
Bill Hoppner, his Chief of Staff who was effectively governor 
during the first years of Kerrey's administration, until he left 
the state to go work for Bill Wright in California; and Warren 
Buffett, billionaire from Omaha and the new CEO of Salo- 
mon Brothers. 

These are the men who will tell Bobby when to open his 
mouth, and what to say, so much so that I will make a prediction: 
Look for Bobby to start taking stands for population control. 
His financial angel Warren Buffett is a fanatic on the issue, 
and funds the most radical population reduction groups in 
the country. 

4. Operating with the protection of a corrupt press. The press 
can turn truth into falsehood, and lies into truth-such is its 
power in Nebraska, and also nationally. The media should be 
the ultimate check and balance of our other institutions of 
government in this country. Three times in my short life-the 
McCarthy era, Watergate, and Iran-Contra-it was the press 
that finally exposed the truth and kept our Constitutional system 
of government in place, rather than the institutions of govern- 
ment themselves that are assigned that purpose. 

In the case of Commonwealth and State Security, Robert 
Kerrey had a relationship with the two major news sources in 
Nebraska, the Omaha World-Herald and the Lincoln Journal, 
that guaranteed presentation of a distorted and false picture of 
Commonwealth and State Security. His personal and business 
relationships with the owners and publishers of the Lincoln 
Journal guaranteed that truth would be sacrificed to conve- 
nience. And his business and personal relationship today with 
the World-Herald publisher guarantees even more certainly 
that same result from the World-Herald. 

Lest anyone doubt the latter, consider the "open mike" inci- 



270 



APPENDIX B: BOBBY AND ME 



dent of November 1991. Kerrey found himself on a podium 
in New Hampshire, sitting next to fellow-candidate Governor 
Bill Clinton of Arkansas. Not realizing a microphone was on, 
he told Clinton a dirty joke that was offensive to lesbians and 
homosexuals, whom he has otherwise supported. Some of the 
nation's press attacked him for his crudity. But here is how 
the World-Herald, run by his business partner Jack Gottschalk, 
covered it in an editorial entitled "Kerrey, Too, Deserves 
Apology." 

Bob Kerrey is right when he says he shouldn't have repeated 
the crude story he told Bill Clinton in a private conversation 
in New Hampshire. Nonetheless, it would be unjust if this 
stupid, minor, blown-out-of -proportion incident were to hurt 
Kerrey's campaign for the Democratic presidential nomi- 
nation. 

The World-Herald gave a tortured argument, that Kerrey 
was only telling Clinton the joke as an example of jokes which 
should not be told. At that, I had to laugh, because of a sense 
of deja vu. It was one unforgettable thing about politicians 
close to the Kerrey administration, that they habitually used a 
dirty or racial joke to open a conversation. Bill Hoppner, now 
chairman of Kerrey's presidential campaign, was the master of 
masters, when it came to telling the raunchiest sexist or ethnic 
joke. And this particular joke, Bobby Kerrey himself told years 
before, only then he used my name instead of Jerry Brown's! 

Bobby's friends at the World-Herald, however, concluded: 

The senator on Tuesday apologized to anyone who took 
offense at the story. It was the proper and political thing to 
do. The way the story developed, however, Kerrey may be 
the target of a carefully crafted sabotage operation. Perhaps 
someone should apologize to him. 

I sent the following letter to the editorial board of the World- 
Herald which, naturally, did not print it. 

Everybody suspected-but now we know, don't we? 

It really was the World-Herald directing the Franklin 
Grand Jury. For doubters, read the 20 November 1991 edito- 



271 



THE FRANKLIN COVER UP 



rial titled, "Kerrey, Too, Deserves Apology." That's right, 
Bob Kerrey tells dirtyjokes about lesbians, and gets caught. 
Immediately, the World-Herald decides that Bob Kerrey 
is the victim because the evil people dared to catch him 
committing his dirty joke routine. 

The World-Herald editorially attacks the accusers and 
labels Kerrey as the "target of a carefully crafted sabotage 
operation." And demands that his victims apologize to him. 

In Franklin, the child-victim accusers were labeled as the 
bad people and the people they accused were the "target of 
a carefully crafted hoax." 

Go ahead, World-Herald, tell us dumb Nebraskans that 
you did not write the script for the Franklin Grand Jury. 



As I told People magazine in their November 25, 1991 
profile of the candidate, Bob Kerrey has a magical ability, to 
make s— smell like apple butter. Charisma? He has more than 
anyone I have known. I think he imitates Jack Kennedy even 
better than Jack Kennedy at times, in the way he speaks and 
smiles. 

He also has a practiced method for touching up his image. 

I have seen Robert Kerrey resort more brilliantly, success- 
fully, and often than any other politician, to what I call the 
Pre-emptive First Strike Confession. If you are about to be 
compromised or tarnished by your own record, act swiftly, 
before a scandal develops. Make a tearful confession to a 
friendly press conduit about your "youthful indiscretion" or 
your "regrettable shortsightedness." Take something that could 
and maybe should destroy you politically, and turn it into 
an asset. 

When Bobby needed to clean up his image on banking 
matters in order to attack George Bush's handling of the S&L 
crisis, he staged a confession to Kotok of the World-Herald, 
that yes, perhaps, being new to politics and all, he had relied 
a tad too much on the advice of Bill Wright in the Common- 
wealth/State Security affair. 

When it appeared that his repudiation of his 1982 anti- 



272 



APPENDIX B: BOBBY AND ME 



abortion letter to Senator Labedz might be used against him 
in the presidential campaign, given his current pro-abortion 
views, Bobby explained that back then, "I didn't know abortion 
from a load of hay." 

1 dare the national press to go through the record of Bob 
Kerrey and see how many Pre-emptive First Strike Confessions 
he has made on major matters. Then, compare this with any 
other politician. Kerrey will win hands down. 

With his flip-flops and prevarication, his personal aggran- 
dizement, his manipulation by forces behind the scenes, and 
his protection by a controlled press, we are in for some very 
rough times, if Joseph Robert Kerrey ever becomes President 
of the United States. 

lhave warned you. lhope 1 never have to say, "ltold you so." 



273 



PART n 



INTRODUCTION 



It is a little over four years since I, John DeCamp, wrote the 
words you have just read. My closest friend and mentor, Bill 
Colby, like so many others in the Franklin case, is dead; he 
was fished out of a river in front of his home, under the most 
questionable of circumstances, in April 1996. 

Was he killed because of his involvement in Franklin? I 
don't know. What I do know, is that Bill Colby was the heart 
and soul of the Franklin investigation. Although at a certain 
point he warned me against investigating the case further, it 
was he who relentlessly pushed to publicly expose what had 
already been discovered, when everyone else, including, at 
times, myself, wanted to call it quits. Without him, this book 
would never have been written. In the new, final chapter of 
this second edition, I tell much more about my relationship to 
Bill Colby, who was, in my estimation, one of the greatest 
patriots this country has seen, from the time that he served as 
our country's Deputy Ambassador to South Vietnam (but, in 
reality, as CIA Station Chief), and recruited a young combat 
infantry captain named John DeCamp to be one of his chief 
assistants in Operation Phoenix, right through to his role in 
trying to blow open the Franklin cover-up. 

I published The Franklin Cover-Up, as much as an insurance 
policy for myself and my family, as for any other purpose. 
Colby had pointed to the extreme danger for a person to have 
secret knowledge about a situation, that others who are affected 
want to keep out of the public's view. 

"Some people will go to any lengths to make sure things 
stay secret," Colby had often repeated to me, "which is why 
the CIA and the KGB sometimes find their agents dead. Your 



277 



THE FRANKLIN COVER-UP 



best interest," he argued, "may well be in publishing what you 
know and are able to prove, rather than keeping those facts 
secret. Whether you ever sell a single book or not does not 
really matter. Putting your information on the public record is 
what is important. That way, there is no logical reason to harm 
you or your family, to suppress some truth you have already 
documented. That is probably your real life insurance policy in 
something like this Franklin situation," Colby had advised me. 

Now, four years later, without a single dollar spent in adver- 
tising or promotion, over 50,000 copies of this book have been 
sold nationwide. I am convinced that this is why I am alive 
today, although I did receive a warning in September 1996, 
through reliable sources, that I am targeted-i-vjust like they 
got Colby." There have also been innumerable attempts to 
disbar me. Although I have thus far been able to defeat every 
one of these attempts, they keep coming; to silence me through 
disbarment is, for those trying to hide the truth on Franklin, 
the equivalent of assassinating me. So, the battle continues, 
both in the Franklin case per se-about which I include stunning 
new material which proves the truth of Part I of this book- 
and in the new cases in which I have become involved. As a 
result of the first publication of The Franklin Cover-Up, as an 
attorney, I have become involved in some of the most famous 
legal cases now occurring in these United States, from cases 
involving the militia movement, to the Oklahoma City bomb- 
ing, to the notorious Gordon Kahl shootout with U.S. Marshals, 
about which documentaries and movies have been made, to 
appearances before the U.S. Senate on all of these matters, 
including Ruby Ridge and Waco. I have appeared on all of 
the national TV networks, and on many national shows, such 
asNightline with Ted Koppel, Good Morning America, CNN's 
Burden of Proof, America's Most Wanted, and others. 

So, I say, as I dedicate this second edition of The Franklin 
Cover-Up to my friend and mentor, William Colby: "Thanks, 
Bill. You were right, so right it terrifies me. I told the truth, 
just as you instructed. Now, as a result of the publication of 
the original Franklin Cover-Up, I have ended up in situations, 
where, once again, the truth must be told on some explosive 



278 



INTRODUCTION 



new issues, whose consequences rival those of Franklin, for 
the future of this country." 

Thus, this new edition contains eight dramatic new chapters 
(and an epilogue): The Franklin Investigation, and Cover-up, 
Continue; Four Years Later-Where Are They Now?; Troy 
Boner Steps Forward; Drugs and the Monarch Project; From 
Montana to Oklahoma City; The Oklahoma Bombing; The U.S. 
Justice Department Murder of Gordon Kahl; and InMemoriam: 
Bill Colby. This concluding chapter will reveal more about 
Colby's role in Franklin, and his very last instructions to me, 
two weeks before his death. 

Finally, the last word on the Franklin cover-up is delivered 
in the epilogue-not by me, but by the nineteenth-century 
novelist Herman Melville. Besides his famous Moby Dick, 
Melville wrote short stories. A high-ranking personage in- 
volved in the Franklin case, told me that one of these stories 
contained the ultimate secret behind the Franklin cover-up. 

He was right. 



279 



CHAPTER 18 



THE FRANKLIN 
INVESTIGATION, 
AND COVER-UP, 
CONTINUE 



When the first printing of what you have just read appeared 
in May 1992, I was threatened with countless law suits by 
individuals named in the book. I was told by their attorneys, 
from some of the most prominent law firms in the state and 
in the country, that "We will destroy you in court." As it turned 
out, although there have been numerous attempts to disbar me, 
only one law suit for libel and slander was ever launched as 
a direct result of the book- and that was a suit I launched and 
won, as I will relate. 

My victory in that case was but one of a series of what I call 
the "mini-miracles" -perhaps a hundred or more unforeseen 
events since the book first hit the streets, which prove the truth 
of The Franklin Cover -Up. I have chosen a small sampling of 
these "mini-miracles" to recount here. 



After this book appeared, attorneys for Franklin-related indi- 
viduals repeatedly appeared in the printed media (particularly 
in the Omaha World Herald) and on TV to make statements 
such as: 

"This book is the most libelous and slanderous book I have 
ever read. The individuals who have been slandered in this 
book will definitely be filing legal actions to stop distribution 



280 



INVESTIGATION. AND COVER-UP. CONTINUE. 

of this book and against Mr. John DeCamp personally. That 
is certain. This book will be stopped and Mr. DeCamp will be 
proved to be a liar and made to pay damages." 

When reporters who interviewed the lawyers or principals 
named in the book contacted me for my response to their 
threats, I had one standard answer: 

"I agree with certain things these people and their attorneys 
attacking me are saying. I agree that the things described in 
this book are horrible. If anyone had said these things about 
me, I agree that I would sue them. I believe if there is anything 
false in this book or if they believe I have not told the truth 
in this book, that they should sue me. In fact, I welcome their 
law suits, because that will help develop the truth. I personally 
believe I have been most careful and cautious in the way I 
have handled matters, and only written about those things I 
can absolutely document." 

So, what happened with those threats? Who sued whom? 
Who proved what? 

The only major lawsuit for libel and slander arising from 
this book was my suit against Atlantic Telecast, owner of 
a television station in Wilmington, North Carolina, WECT 
(Channel 6). I charged that statements made on a WECT news 
broadcast on November 12, 1992, attacking me and the book, 
were false. I demanded a retraction and public apology. 

The first response I received was from WECT's station 
manager, who informed me that WECT had consulted its attor- 
neys, that the station had thoroughly investigated the matters 
described in my book, and that WECT was not only not going 
to apologize, but planned to repeat the attacks. 

WECT's attorney further advised me that the station had 
investigated, in part, by talking to U.S. Senator Bob Kerrey 
Nebraska, who was running for president of the United 
States at the time, and who had visited Wilmington, and met 
representatives of the TV station. Further investigation, 
he claimed, was conducted by talking to the new Wilmington 
police chief, a man named Robert Wadman-the former police 
chief of Omaha, Nebraska, who had come to Wilmington in 
the early 1990s! 



28\ 



THE FRANKLIN COVER-UP 



After hearing this, I gave a simple demand to WECT: "Rest 
assured I am ready to prove everything I wrote in my book. I 
hope you are ready and able to prove your claims made on 
TV. I give you three weeks for further investigation, and then 
I will move forward aggressively on my lawsuit against you. 
At that time, I will seek not only an apology, but substantial 
monetary damages." 

Just under three weeks from the date of my ultimatum, 
attorneys from Atlantic Telecast contacted me and stated that 
they had done further investigation and acknowledged that now 
they, not I, were in trouble. 

Shortly thereafter, a settlement agreement was reached which 
stipulated: (1) WECT TV would broadcast a retraction and 
public apology to me on its news broadcasts, and would issue 
a press release to the same effect; (2) WECT would pay me 
money damages and other financial benefits; (3) All other de- 
tails of the settlement, other than those stated above, would be 
kept confidential for the benefit of the TV station. 

I accepted the settlement offer, and dismissed my lawsuit. 
WECT lived up to its part of the settlement, and I have lived 
up to mine. 

My lawsuit intersected a fierce political battle between Chief 
Wadman, upon whom WECT had relied for its information, 
and his own police department, particularly with an officer 
named Sgt. Robert Clatty. Sgt. Clatty is the Wilmington Police 
Department's expert on satanic ritual abuse of children, and 
is one of North Carolina's recognized experts as well, with 
published works on the subject. Chief Wadman, on the other 
hand, claimed that there was no such thing as satanic ritual 
abuse; he attempted to make it impossible for Sgt. Clatty to 
carry out his work, and, at one point, suspended him. 

The publicly waged war between Chief Wadman and his 
wide array of defenders in Wilmington and across North Caro- 
lina, and Wadman' s adversaries, led primarily by Officer Clatty, 
went as high as the State Legislature. From 1992 until roughly 
mid- 1994, it divided the city of Wilmington, and even the state 
of North Carolina. 

The outcome of the war between Chief Wadman and his 



282 



INVESTIGATION, AND COVER UP, CONTINUE 

own force was that in early July 1994, a secret meeting was 
held with city officials and Wadman's attorney. On July II, 
1994, Wadman resigned as police chief. Although city officials 
refused to comment on what had transpired in the meeting, 
Wadman himself admitted in a television interview later that 
month, that he had been ordered to resign from the Wilmington 
Police Department. 



In May 1992, shortly after the first edition of this book was 
published, Monsignor Robert Hupp, who had been the head 
of Boys Town from the late 1970s through the decade of the 
1980s-the critical time in question for the Franklin case, 
contacted me and asked to have a meeting, at which he specified 
that witnesses must be present. I anticipated that his purpose 
was to attack me, and to deny what I had written about 
Boys Town. 

I was completely wrong. With two witnesses present, Monsi- 
gnor Hupp opened our discussion with the simple statement: 
"John DeCamp, your book stated the game; I hope I can help 
with some of the names." 

Monsignor Hupp and I then entered into an in-depth discus- 
sion on the entire situation involving Boys Town, Larry King, 
Peter Citron, the pedophile problem in general, and the entire 
story of the Franklin cover-up. 

He verified piece after piece of evidence of the Franklin 
story for me, and provided guidance on other directions in 
which to look, to develop further proof of the children's stories 
of abuse by this country's wealthy and powerful. 

When I asked Monsignor Hupp how this ever could have 
happened at Boys Town, he looked at me and told me, so 
apologetically, "I am like the wife who did not know, and was 
the last to find out. And when I finally did suspect something 
and tried to act, the Archbishop [Daniel Sheehan] elected to 
do nothing about it, when I asked him to help. And then, when 
I came upon something horribly evil, I found public officials 
and the Church would do nothing-apparently terrified at the 



283 



THE FRANKLIN COVER-UP 



damage it would do to the Church and to the entire city of 
Omaha," Monsignor Hupp said. 

"What are you talking about?" I asked him. "Is there some 
particular story or incident you are talking about in the book 
that you have more information about? Please explain what 
you mean," I asked the Monsignor. 

He then described an incident in 1985, in which a young 
boy named Shattuck, who lived in Elkhorn, Nebraska, had been 
sexually abused and then killed. The Monsignor told me that 
he was certain who had killed the boy, a man he identified as 
a member of the Catholic clergy in the Omaha Archdiocese. 
Monsignor Hupp provided precise detail which he said proved 
beyond any doubt, that the particular individual he named was, 
in fact, the child's murderer. 

"The Church is plagued by these sexual abuse problems 
across the country and by the devastating publicity the clergy 
abuse incidents have caused," Monsignor Hupp explained. "The 
Church's reaction to these sexual abuse problems is, in most 
cases, to immediately get the clergy member involved out of 
the state and, if possible, out of the country, and hopefully into 
treatment. I know that may not be right, but it is a difficult 
situation to deal with, and simply moving the priest or the 
brother out of the state or country has been the traditional 
approach by the Church in America to addressing the problems. 
In this case, where an innocent child was murdered and where 
1 know that a member of our clergy has done this, I felt I had 
a moral obligation overriding all other things, to bring the 
situation to the attention of the appropriate authorities. And I 
did," Hupp concluded. 

The Monsignor then shocked me for the second time that 
day- and in a way that brought back to me the horrible memo- 
ries of the Franklin cover-up. 

He explained that after he determined that the Catholic Arch- 
bishop of Omaha was not going to take action on the case, 
he then went to the FBI and to the Omaha law enforcement 
authorities to provide complete details on the child's murder. 

So, what happened as a result of Monsignor Hupp's actions? 

Apparently, nothing. Each year on the anniversary of the 



284 



INVESTIGATION, /" ND COVER.UP, CONTINUE. 

child's murder -now almost ten years-the media talks about 
the case as being "under investigation," and street rumors 

persist ^Kxmt the Catholic clergyman-the one Monsignor 
Hupp (-.ielieves killed the child- who was shipped out of state 
for treatment right after the murder. 

1 in the aftermath of our meeting, Monsignor Hupp ran into 
, his own problems. In September 1992, the Monsignor advised 
me that he was receiving all kinds of pressure and criticism 
and was, he feared, being forced to leave Boys Town. 

Shortly after that discussion, in a controversy that received 
national press attention on how resources should be used at 
Boys Town, Monsignor Hupp was removed from his post. 
He now lives quietly in a home in West Omaha, Nebraska. 
Monsignor Hupp has shown incredible courage, as he has con- 
tinued to provide me direction and assistance in the Franklin 
investigation and related matters. 

Monsignor Hupp is not some 13-year-old kid whom the 
cops say they cannot trust or believe. On the contrary, he is 
one of America's most famous and nationally honored clergy- 
men; the author of two best sellers; a former Presidential Ap- 
pointee as Special Ambassador to the United Nations; and the 
former head of America's most famous child care institution 
(Boys Town). 

Monsignor Hupp showed his courage yet again, when he 
repeated his charges a year later to a British TV team making 
a documentary on the Franklin cover-up, entitled Conspiracy 
of Silence. 



In mid- 1993, after The Franklin Cover- Up had been circulat- 
ing for almost a year, the British-based TV station, Yorkshire 
Television, sent a top-notch team to Nebraska to launch its 
own investigation of the Franklin case. Yorkshire had a contract 
with the Discovery Channel to produce a documentary on the 
case for American television. 

They spent many months in Nebraska, and also traveled this 
country from one end to the other, interviewing, filming, and 



285 



THE FRANKLIN COVER-UP 



documenting piece-by-piece the Franklin story I had told it 
in the book. They spent somewhere between a quarter-million 
and one-half million dollars investigating the story, deploying 
probably a thousand times the resources and abilities that I 
personally had. 

Over the year that I worked with them, I was amazed at 
team's ability to gather new documents and witnesses which 
kept opening up new and frightening facts about Franklin. They 
were a crack team. In the final weeks that they were in Nebraska, 
they expressed their certainty that they would win awards for 
this documented horror story of government-sanctioned drug- 
running involving children; government-sanctioned abuse of 
children; and government protection of some of this country's 
most powerful businessmen and politicians, who had been the 
chief actors in the Franklin story. 

Finally, the big day came. Their documentary was to air 
nationwide on the Discovery Channel on May 3, 1994. It was 
advertised in the TV Guide and in newspapers for that day. 
But no one ever saw that program. At the last minute, and 
without explanation, it was pulled from the air. It was not 
shown then, and has never been broadcast anywhere since. 

I have a copy of that program, which arrived anonymously 
in my mail in late 1995. When I watched this pirated copy, 
I could see clearly why the program had been suppressed. 
Conspiracy of Silence proved, beyond doubt, that the essential 
points I had stressed in the book (and more) were all true. 

For instance, the team had interviewed Troy Boner. Some- 
time after that grand jury was over, Troy, guilt-stricken because 
of his lying over Gary Caradori's death, contacted me and 
told the truth about what had happened. This is recorded in a 
remarkable affidavit (see Chapter 20). The Yorkshire TV team 
spent a small fortune to confirm Troy's charges. They flew 
Troy to Chicago and paid for a lengthy polygraph (lie detector) 
test at the Keeler Polygraph Institute. With the results of that 
test, the Yorkshire team was so convinced that Troy was telling 
the truth, that they featured him in their documentary. 

It was only in mid- 1996, that I finally pieced together, 



286 



INVESTIGATION, AND COVER-UP, CONTINUE. 

through sources I am not at liberty to disclose, what happened 
to stop the broadcast of this documentary. 

1. At the time the Yorkshire TV team and the Discovery 
Channel were doing the documentary, they had no idea how 
high up the case would go into Government, and what major 
institutions and personalities in this country, would be found 
to be linked to the Franklin story. Ultimately, the documentary 
focused on several limited aspects documented in this book, 
and developed them much more extensively than I ever had 
the resources or abilities to accomplish. 

2. These areas which the documentary focused on, were: 
(a) the use and involvement of Boys Town children and person- 
alities in the Franklin Scandal, particularly Peter Citron and 
Larry King's relationships to Boys Town; (b) the linkage of 
Franklin to some of this country's top politicians in Washing- 
ton, and in the U.S. Congress, with particular attention on those 
who attended parties held by Larry King at his Washington 
mansion on Embassy Row; (c) the impropriety of these politi- 
cians and businessmen and compromising of these people by 
Larry King, through drugs and using children for pedophilia. 

3. When the broadcast tape was sent to the United States, 
Customs officials seized the documentary and held it up as being 
"pornographic material." Attorneys for Discovery Channel and 
Yorkshire TV were able to get the documentary released. Then, 
the lawyers went through the film for months, making this or 
that change or deletion, so that the documentary ultimately 
advertised to be shown on the Discovery Channel on May 3, 
1994, would survive any claims of libel or slander that any of 
the individuals identified in the documentary might attempt to 
bring. The lawyers had cleared the documentary for broadcast. 

4. During the several months that the documentary was 
being prepared and advertised for showing, major legislation 
impacting the entire future of the Cable TV industry was being 
debated on Capitol Hill. Legislation, which the industry op- 
posed, was under debate for placing controls on the industry 
and the contents of what could be shown. Messages were 
delivered in no uncertain terms from key politicians involved 



287 



THE FRANKLIN COVER UP 



in the Cable TV battle, that if the Conspiracy of Silence were 
shown on the Discovery Channel as planned, then the industry 
would probably lose the debate. An agreement was reached: 
Conspiracy of Silence was pulled, and with no rights for sale 
or broadcast by any other program; Yorkshire TV would be 
reimbursed for the costs of production; the Discovery Channel 
itself would never be linked to the documentary; and copies 
of Conspiracy in Silence would be destroyed. 

Not all copies were destroyed, however, as I and some 
others received anonymously in the mail a copy of the nearly- 
finished product. 



I said in Chapter 12, "The Omaha Business Community": 

"As essential to Franklin as [Harold] Andersen's fundraising 
and publicity were, the credit union could not have functioned 
for a single day without the complicity of Nebraska's largest 

bank, FirsTier Every dollar that went into Franklin Credit 

Union-the missing $40 million was no exception-went into 
its account #153-7-353 at FirsTier." 

In October 1994, evidence released through the Freedom of 
Information Act (FOIA) proved exactly how right I was. These 
FOIA documents showed that some of the same attorneys who 
had threatened so loudly to sue me, together with the FirsTier 
Bank with which they were associated, had reached a finan- 
cial settlement with the National Credit Union Association 
(NCUA), in which they agreed to pay the NCUA $10 million 
in damages for their role in improprieties involving Franklin. 
The attorneys had to come up with over $6 million, and First 
Tier itself, over $3 million. 

Despite the fact that the FirsTier case was the biggest mal- 
practice settlement in the history of Nebraska, and despite the 
fact that the settlement involved very prominent individuals- 
including former Republican Governor Charlie Thone and at- 
torney Jay Derr-the story received almost no coverage in the 
press, that is, before the FOIA material became public. Then, 
the World Herald jumped in with a huge editorial in October 



288 



INVESTIGATION, AND COVER.UP, CONTINUE. 

1994, entitled "Franklin Credit Union Crimes Unfairly Claim 
New Victims." The World Herald wrote: 

"Some defendants, including banks and a law firm, have 
agreed to pay more than $10 million to the NCUA to settle 
the claims. They admitted no wrongdoing. They said they acted 
to avoid prolonged litigation. Their position is understandable. 
Litigation is expensive. Moreover, this particular litigation ran 
the risk of creating a false impression. . . . The impression 
could have taken hold that a wide circle of legal and financial 
advisers sat on the knowledge that King was looting the credit 
union Such an impression would have been false." 

There was, indeed, "a wide circle of legal and financial 
advisers" in on the looting of Franklin, just as I had charged, 
and whom I name in Chapter 12, "The Omaha Business Com- 
munity." Finally, some of them, at least, had to pay for it. Nor 
was this the only multi-million dollar scam to be exposed in 
the wake of the first edition of this book. 



In Chapter 6, I described another big money scheme that 
intersected the Franklin case-the looting of the Common- 
wealth Savings Bank, in which I filed a claim on behalf of the 
Commonwealth victims. To my surprise and joy, I succeeded 
beyond all my expectations in this case-until a strained inter- 
pretation of our state Constitution was put forward by Nebras- 
ka's Supreme Court. 

First, I presented to the Claims Board the Commonwealth 
story exactly as described in this book, but with even more 
extensive documentation. 

The Claims Board agreed and reached a Settlement for some 
$16,000,000.00 to be paid to the Commonwealth victims. 

But, the Legislature had to approve this, as did the Governor. 

So, we took the matter of the settlement-with me as attorney 
for the Claimants and victims-to the State Legislature. Sur- 
prise-in a close but bitter battle, enough Senators stood up 
to acknowledge the horrible acts that had occurred, and the 



289 



THE FRANKLIN COVER-UP 



intense suffering of the Commonwealth victims that resulted. 
The settlement was approved. 

Next, we went to the Governor, who signed the legislation 
for the settlement. 

Then, the matter was taken to court by certain unnamed 
individuals (concerned citizens), who claimed that they did not 
want their tax money used to pay these Commonwealth victims. 
Nebraska has a unique section in its State Constitution which 
forbids the state from using any tax dollars for purposes of 
extending the credit of the state or granting a gift. 

The result: that which the Claims Board, and the Legislature 
and the Governor all agreed the Commonwealth Savings Bank 
victims were entitled to because of the failures of the Govern- 
ment in Commonwealth, was taken away by the Supreme Court 
of the State of Nebraska. The Court claimed that Nebraska's 
Constitution forbids paying the money to the victims, because 
they were only victims of moral wrongdoing, rather than le- 
gal wrongdoing. 

And John DeCamp, who would have become a multi-mil- 
lionaire out of the case because I had done it on a contingent 
fee basis, ended up with nothing but the certain knowledge 
that I had established the truth as I have written in this book 
with respect to Commonwealth Savings Bank and certain of 
the personalities who are today so prominent on the national 
scene-Senator Bobby Kerrey, for example. 



Besides Yorkshire TV, the most notable among the electronic 
media which became interested in the Franklin story was the TV 
program, America's Most Wanted (AMW). In several episodes, 
AMW opened up a whole new dimension on just how high 
up politically the story went and how wide it reached across 
the country. 

For a while, I had great hopes. For example, AMW inter- 
viewed Paul Bonacci in prison and broadcast his account of a 
host of specific details about individuals, places, activities, 
kidnappings, etc., in which he said he had participated. 



290 



INVESTIGATION, AND COVER-UP, CONTINUE. 

To the shock of AMW (and sometimes, of myself), the inci- 
dents Paul Bonacci described, when investigated by AMW, 
turned out to be exactly as Paul had recounted. 

For instance, a young boy named "Jimmy" who had been 
branded by pedophile perpetrators-like you would brand a 
steer with a hot iron-cautiously came forward to a nationally 
broadcast request by AMW, and verified many of the events Paul 
had described, including a secret hiding place for concealing 
children located in Colorado, precisely as Paul had said. 

Investigation by AMW in preparing subsequent episodes of 
the program, began turning over more and more rocks, provid- 
ing still more proof of the story told by Alisha Owen and by 
the other victim-witnesses. AMW even featured a one-hour 
special on one of the most important kidnappings on which 
Bonacci had given details, that of Johnny Gosch, the Des 
Moines, Iowa, newspaper boy who had disappeared a dozen 
years ago. Gosch's parents, John and Noreen, had repeatedly 
met with Bonacci and become convinced of the truth of Paul's 
description of the kidnapping and of Paul's own participation 
in it. At a press conference reported in the World Herald April 
7, 1992, John and Noreen Gosch had declared: "Paul (Bonacci) 
told my wife and I things that we've never told anybody." 

The investigation was moving rapidly in the Franklin case, 
as proof poured in by the bucketful. Then, I received a call 
from AMW producer for the show, Paul Sparrow. 

"We are going to slow it down a bit on the Franklin story," 
Sparrow told me, "until you can get a break in the courts or 
get some responsible law enforcement to follow up some of 
the leads we have provided them. I don't know how to exactly 
say this, but I am beginning to understand what you are up 
against when it comes to certain law enforcement not wanting 
to pursue this story," Sparrow continued. 

"What, exactly, do you mean?" I asked him. 

"Well," Sparrow continued, "you must be aware of the fact 
that America 's Most Wanted works extremely close with the 
FBI. In fact, without them we would not really be able to have 
a program. We really have never had any major disagreements 
in all our programming because we can't afford to. Our success 



291 



THE FRANKLIN COVER-UP 



requires their cooperation and we are a tremendous benefit to 
them, which they could get nowhere else. But we are running 
into some severe problems on this Franklin thing. It is the first 
time that the FBI is refusing to cooperate. And, they are making 
it very clear that they want us off of this story- particularly 
anything to do with the FBI." 

Paul Sparrow told me much more, but I promised confiden- 
tiality on those matters and will live up to that promise. 

As I told Paul several weeks later, "You have done a tremen- 
dous service for this country in the work you did on the Franklin 
case, on its nationwide links and on its drug dealing and political 
implications, and particularly, by proving so many of the things 
in question, including even arranging to have Paul Bonacci 
polygraphed by some of the nation's best experts to prove his 
truthfulness. I full well understand your sensitive situation and 
your relationship with the FBI and the problems this entire 
case causes for you, because the essence of Paul Bonacci and 
the children's claims is that the FBI, for whatever reasons, is 
refusing to do anything about this case and is itself part of the 
cover-up." 

I told Paul Sparrow that I accepted his definition of his duty: 
to provide an entertainment program to the American public; 
that requires the complete cooperation of the FBI, rather than 
an adversarial relationship. I have continued to maintain contact 
with Paul Sparrow and America's Most Wanted, and maintain 
the highest admiration for Paul and his work. But he has done 
his job. Now, it is up to myself and other Americans, and 
particularly law enforcement, who had the opportunity to see 
the America's Most Wanted programs, to do something about it. 

AMWhad turned up boatloads of new evidence on the Frank- 
lin case, and on the kidnapping of Johnny Gosch. The FBI, in 
response to this new evidence, officially stated that Alisha 
Owen was a convicted liar, and that Paul Bonacci was a con- 
victed child molester. Their response to the October 1993 re- 
quests of Troy Boner and his mother to join the Federal Witness 
Protection Program, so they could safely provide further evi- 
dence on Troy's affidavit statement, was to not only deny the 
request but to threaten Troy with prosecution on charges of 



292 



INVESTIGATION, AND COVER-UP, CONTINUE 

perjury, if he attempted to change the fabricated story that had 
helped convict Alisha Owen. 



Still another revelation confirming the Franklin story sur- 
faced with the apparent forced retirement of FBI head William 
Sessions in 1994. In Chapter 14, "Cover-up Phase III: The 
FBI," I discussed the case of the African- American FBI agent 
Donald Rochon in Omaha. Rochon had alleged, in his lawsuit 
against the FBI, that, in addition to harassing him, FBI agents 
in the Omaha office were involved in all sorts of sexual perver- 
sions, and these same agents were also "investigating" homo- 
sexual prostitution rings involving Boys Town. As I had re- 
ported, it was only a matter of time until Rochon discovered- 
if he had not done so already-that his FBI tormentors were 
deeply involved in the Franklin affair itself. The FBI agreed 
to settle Rochon's suit by paying him $1 million, and to reim- 
burse his legal expenses of $500,000. 

Later, in 1994, when the press was hounding Sessions as to 
what, if anything, he had done during his term as FBI Director, 
Judge Sessions defended himself by recalling his "successful" 
handling of the law suit of the former FBI agent Donald Rochon, 
which, he said, he had been able to settle, without it damaging 
the FBI. Sessions said that the horrible allegations Rochon had 
made in his lawsuit were in fact true, and that a public trial 
would have damaged the Bureau. He, Sessions, had prevented 
this disaster by settling out of court. 



In Chapter 14, "Cover-up Phase III: The FBI," I reported 
how, in October 1989, John Stevens Berry, counsel for the 
State Senate Franklin Committee grilled Omaha Police Chief 
Robert Wadman as to why the Omaha Police Department was 
dismissing the reports by child victim-witnesses of horrific 
abuse, and of other crimes. Wadman replied: 

"The FBI . . . conducts an investigation and basically says 



293 



THE FRANKLIN COVER-UP 



the same things that we have said. If the FBI, are they now 
linked to this cover-up in some way? Should the Justice Depart- 
ment be investigated as somehow or another assisting in this 
'cover-up' ?" 

I noted, apropos of this exchange, that, "Wadman said it, 
but in this case it's true. The Justice Department, acting through 
the FBI and the U.S. Attorney's Office in Omaha, emerges 
from the record of the Franklin investigations not so much as 
a party to the cover-up, but as its coordinator." 

Now, four years later, I am even more certain of these 
charges. Not only has information continued to pour in on the 
Franklin case which strengthens me in that conviction, and not 
only has the Justice Department turned its back on a high-level 
request to re-examine the whole Franklin case (see Chapter 25), 
but, in case after notorious case entirely unrelated to Franklin, 
Justice Department personnel appear as liars, perverts, frame- 
up artists, and even-assassins. 

An increasing number of citizens view the United States 
government with suspicion, even hatred. Though there are no 
doubt other branches of the government where corruption 
flourishes, there is no question in my mind that the stench of 
evil which emanates from Washington, originates in the so- 
called Department of Justice, particularly in its permanent bu- 
reaucracy. I have documented that case with respect to the 
Franklin cover-up, and the average citizen may have become 
aware of it in the massacre at Ruby Ridge, Idaho, in August 
1992, where it is now generally acknowledged that the Justice 
Department, through its FBI marksmen, murdered the 14-year- 
old son and wife of Randy Weaver. The same thing happened 
in Waco, Texas in 1993, when the Justice Department directed 
the slaughter of 86 people, based on false reports from "infor- 
mants" out of Melbourne, Australia, associated with the Anti- 
Defamation League of B'nai B'rith. 

I will note here, several other cases in which that same 
hideous corruption is apparent, and then describe at length, in 
Chapter 24 how the U.S. Justice Department on June 3, 1983, 
killed in cold blood midwestern farm activist Gordon Kahl, 
whose son is now my client. 



294 



INVESTIGATION, AND COVER-UP, CONTINUE 

THE LAROUCHE CASE 

I think by now, although the major news media alternately 
blacks him out, or slanders him, most people in the country 
know something about the economist and several-time Demo- 
cratic Party presidential candidate, Lyndon H. LaRouche, Jr. 
After all, he did get a very respectable 600,000 votes in the 
Democratic presidential primaries in 1996, averaging 10% or 
more of the vote in each state in which he ran. And, while 
people may have heard that he is a "convicted felon," they 
probably have no idea of what actually happened. 

On December 16, 1988, Lyndon H. LaRouche, Jr. and six 
co-defendants were convicted on one count of conspiracy to 
commit mail fraud, eleven counts of mail fraud, in the alleged 
amount of $294,000 in unrepaid loans; LaRouche was con- 
victed on one additional charge, of attempting to defraud the 
Internal Revenue Service. LaRouche was then 66 years old; it 
was obvious that the very harsh sentence of 15 years he was 
given, meant that the Justice Department intended for him to 
die in jail. In 1991, I first had a chance to examine a small 
portion of the six volumes of evidence his attorneys filed with 
the court, proving his innocence. I must say, notwithstanding 
all that I had already been through on the Franklin case, I was 
shocked-no, "stunned" is a better word-by what I read. I 
remember saying to colleagues at the time, "Oh, my God, 
if they can do this to LaRouche, who is a well-known, if 
controversial, political figure, in this blatant way, there is no 
one in the country that they won't simply frame up." 

The U.S. Justice Department had not a shadow of "evidence" 
to convict LaRouche, nor any of his associates, one of whom, 
Michael Billington, was sent to jail in Virginia for 77 years! 
Infact, the evidence showed-in the government's own docu- 
ments released under the Freedom of Information Act-as 
LaRouche's attorneys contended, that "The U.S. government 
knew at all relevant times, from 1979 to the present day, that 
Lyndon LaRouche and his co-defendants were innocent of the 
false charges for which they were convicted." The only crimes 
committed in the "LaRouche case" were the massive illegalities 



295 



THE FRANKLIN COVER-UP 



of the U.S. Department of Justice in their zeal to remove 
LaRouche from the political life of this country. 

It later turned out, as LaRouche's associates found out from 
FOIA appeals, that LaRouche's latest troubles started when 
his longtime political enemy, Henry Kissinger, wrote a letter 
in 1982 to then-FBI director William Webster, asking Webster 
to go after LaRouche. But, already back in 1973, as other FOIA 
documents from the FBI's own files showed, the FBI had 
authorized the Communist Party of the United States (which 
it basically ran, through its "informants") to "eliminate" 
LaRouche-that is, to kill him outright. 

I was not the only one to get a whiff of a big-time frame- 
up. Former U.S. Attorney General Ramsey Clark, with whom 
I had had some contact during the Franklin case, and who was 
LaRouche's appeals lawyer, wrote a letter to Attorney General 
Janet Reno, in which he said, "I believe it [the LaRouche 
case] involves a broader range of deliberate and systematic 
misconduct and abuse of power over a longer period of time 
in an effort to destroy a political movement and leader, than 
any other federal prosecution in my time or to my knowledge." 

And, as of August 1996, 721 U.S. state legislators (and 
thousands more federal parliamentarians and other dignitaries 
around the world) had signed an open letter calling for the 
exoneration of LaRouche which denounced, in no uncertain 
terms, his frame-up. LaRouche is out of jail, and going strong, 
but he has still not been exonerated from the stain of a phony 
conviction, nor compensated for the five years stolen from his 
life, nor for the untold damage done to his political movement. 



THE DEMJANJUK CASE 

A case which almost rivals that of LaRouche, in terms of 
the length to which the Justice Department will go to crush 
one individual, is that of former Cleveland autoworker John 
Demjanjuk. 

In 1979, the Justice Department accused Demjanjuk of being 
the notorious "Ivan the Terrible," the Nazi mass-murderer who 



296 



INVESTIGATION, AND COVER-UP, CONTINUE 

killed countless Jews at the Treblinka concentration camp in 
Poland. Demjanjuk's lawyers later proved-again, from the 
Justice Department's own documents-that the department 
knew, almost from the very beginning, that Ivan the Terrible 
had already been proven to be someone other than Demjanjuk. 
Still other documents showed that the Justice Department 
knowingly accepted a forged J.D. card from the Soviet intelli- 
gence agency, the KGB, to frame Demjanjuk. 

Finally, with the full knowledge that he was innocent, the 
Department of Justice had Demjanjuk extradited to Israel to 
be executed. It was only due to the extraordinary courage and 
tenacity of his Israeli lawyer, Yoram Sheftel, that the Cleveland 
autoworker was finally acquitted. Then, on November 17, 1993, 
the U.S. Sixth Court of Appeals in Cincinnati, Ohio, issued a 
stinging rebuke to the Department of Justice, in an 83 -page 
decision overturning Demjanjuk's denaturalization. The Court 
charged that the Department had committed "prosecutorial mis- 
conduct" and "fraud upon the court," in obtaining the con- 
viction. 

Nothwithstanding all that, the Justice Department is still 
trying to have Demjanjuk extraditedfrom the United States! 

THE FRUEHMENSCHEN 

CAS E 

On January 27, 1988, then-Congressman Mervyn Dymally 
placed before the House of Representatives a shocking 
document. It was an affidavit sworn by an FBI agent, Hirsch 
Friedman, concerning an FBI policy named Operation 
Fruehmenschen (German for "primitive man"). According to 
Friedman's testimony, "The purpose of this policy was the 
routine investigation without probable cause of prominent 
elected and appointed officials in major metropolitan areas 
throughout the United States. It was explained to me that the 
basis for this Fruehmenschen policy was the assumption by 
the FBI that black officials were intellectually and socially 
incapable of governing major governmental organizations 
and institutions." 



297 



THE FRANKLIN COVER UP 



Other evidence backed up Friedman's charges, including a 
1987 book by Dr. Mary Sawyer, Harassment of Black Elected 
Officials: Ten Years Later, a follow-up to a 1977 report she 
had issued on the same subject. 

The figures backed up Dymally and Sawyer's charges. Be- 
tween 1983 and 1988, 14% of all political corruption cases 
targetted black officials, though they comprised only 3% of 
U.S. officeholders. From 1981-1983, roughly half of the 26 
members of the Congressional Black Caucus were targets of 
federal investigation for indictments. In magnitude, this is as 
if 204 members of the (largely white) 435-member House of 
Representatives were under investigation at anyone time! 

On this overall Justice Department corruption, I was very 
heartened to see a resolution from the National Black Caucus 
of State Legislators (NBCSL), which they had passed at their 
19th Annual Legislative Conference, held in Birmingham, Ala- 
bama, from November 28 to December 2, 1995. The resolution 
referred to the two-day hearings which the Schiller Institute 
had sponsored in Virginia on August 31 and September 1, 
where a distinguished panel of legislators and international 
legal experts (including prominent members of the NBCSL) 
came together to examine Department of Justice corruption 
regarding the above cases and others. The NBCSL said, in 
its "Resolution 20: A Call For Congressional Hearings To 
Investigate Misconduct by the U.S. Department of Justice": 

"WHEREAS, the hearings focussed on cases where there 
was evidence of political targeting of groups and individuals by 
corrupt officials inside federal governmental law enforcement 
agencies, working in tandem with a concert of private 
organizations . . . 

"WHEREAS, the evidence was presented, not by the good 
word of the witnesses alone, but documented by the govern- 
ment's own documents, records, and memoranda, first sup- 
pressed and later obtained under the Freedom of Information 
Act, and other legal actions, 

"BE IT RESOLVED... That this body, the 19th Annual 
Legislative Conference of the National Black Caucus of State 
Legislators, join this independent and distinguished panel of 



298 



INVESTIGATION, AND COVER-UP, CONTINUE 

:mdividuals, in demanding that both Houses of the United States 
Congress exercise their oversight responsibility and conduct 
investigative hearings to examine these allegations of gross 
misconduct by the Department of Justice . . . and urge our col- 
leagues in the Congressional Black Caucus to do the same." 
I can only say, "Amen." 



299 



CHAPTER 19 



FOUR YEARS 

LATER-WHERE ARE 
THEY NOW? 



So now, four years later, what has happened to some of the 
key figures in the Franklin case? 

My good friend, William Colby, the chief behind-the-scenes 
architect of the Franklin investigation, is dead. 

Franklin Credit Union boss Larry King has served five years 
in prison and is about to be released. 

Alisha Owen was convicted of perjury on June 21, 1991. In 
February, she went to prison to begin a IS-year sentence. This 
is notwithstanding the fact that the Nebraska Supreme Court 
expunged the report of the Douglas County Grand Jury from 
all official records, because the report violated all laws relating 
to such proceedings. This Grand Jury had indicted Alisha in 
the first place, claiming that the children's charges of abuse 
were a "carefully crafted hoax." The Omaha World Herald, 
however, had extolled the Douglas County Grand Jury report, 
complaining that the Supreme Court had condemned it. 

At my own expense, I have continued to provide legal assis- 
tance to her in the appeals process during the last four years. 
But, I did not represent Alisha at her original, hasty 30-day 
trial, and the problem in defending her subsequently is, that if 
things were done wrong at the trial level, either by the defen- 
dant, or by the defendant's lawyer, it is difficult, if not impossi- 
ble, to correct that problem at the appeals level. The only way 
to do that, is to prove to the court that the defendant did 
not receive adequate assistance by counsel during the trial- 



300 



FO'UR YEARS LATER-WHERE ARE THEY NOW? •_ 

otherwise the appeals attorney is limited to the record created 
during the original trial. 

Troy Boner came under such onerous pressure from the FBI, 
that he recanted all that he had told the State Senate's Franklin 
investigator, Gary Caradori. This recantation was the key factor 
in the Douglas Grand Jury's "findings" that all the children 
had lied. In 1993, Troy engaged me as his lawyer. Before he 
did so, however, I asked him to write an affidavit, telling the 
story as he actually knew it to have actually happened. In this 
affidavit (printed in the next chapter), he reasserted his original 
story, which he had also told the Yorkshire TV crew. He has 
now dropped from sight, no doubt terrified about the threats 
that the FBI and others delivered to him, were he to tell the truth. 

Paul Bonacci has matured, fallen in love, and is a devoutly 
religious young man. He is now a youth counselor, working 
to protect young children from the experiences he suffered. 

The civil rights lawsuit I filed on behalf of Paul still contin- 
ues. It has been an incredibly costly and painful effort for both 
of us. I will try to outline a few of the facts which are on the 
public record with respect to that lawsuit. 

First, as part of our discovery process in the suit, we were 
able to locate a vast store of pornographic materials, which 
were in the possession of the Douglas County Court. These 
had been held by Peter Citron before Citron was arrested. 
However, the court imposed such strict rules on our being 
allowed to see the material, that we were able to review only 
1% of the material-before the court ordered it destroyed! 

The material consisted of thousands of hours of tapes, maga- 
zine articles, and related pornographic materials. The court 
ruled that Paul was not to be allowed to see any of the materials. 

This restriction was extremely damaging to us, because Paul 
was and is the one person who can, and will, identify the 
children and the others in the films-a fact the court itself 
acknowledged! 

The more we began to pour over Citron's materials, the 
more we discovered that huge amounts of them, as identified 
in the official court inventory provided to us, were missing. So, 
we immediately went to court- which took additional time-to 



301 



THE FRANKLIN COVER-UP 



hold hearings and to subpoena officials, to try to locate the 
missing materials and find out how these materials could disap- 
pear, despite strenuous security measures. The official in control 
of the materials simply declaimed: "We admit there are huge 
amounts of pornographic materials missing, but we are not the 
ones who hid or destroyed or took them, and we do not know 
who did." 

Additionally, I could only view the materials in the presence 
of guards and of the Clerk of the Federal Court, at his conve- 
nience, and behind security doors, and with notice given to all 
other attorneys in the case to be present if they so desired. 
All this security was, as I was told, for the protection of the 
pornographers involved-which seems strange, even in this 
bizarre case. 

Under the terms and within the time frame the court allowed, 
it was impossible to ever look at more than a fraction of 
the materials. 

Now, incredibly, the court has ordered the materials de- 
stroyed. 

Arrayed against me in this civil rights lawsuit on behalf of 
Paul Bonacci are lawyers from across the United States, from 
a dozen or so of the highest priced law firms in the country. 
One of them is Ed Warin, a former United States Attorney 
from Nebraska during the time much of the Franklin matters 
were occurring, who represents Alan Baer. The reality I, and 
particularly Paul Bonacci, must face in this lawsuit is this: 
These defendants have unlimited money, power, and resources. 
Paul has no resources and I have limited time and resources 
and a family to support and a living to earn. 

For example, take the Deposition of Paul Bonacci, which 
was given in nine days spread out over the period of a year. 
I have often told Paul, after the deposition and the legal assault 
on his credibility by the battery of high-priced lawyers assem- 
bled against him: 

"Paul, there was truly an angel on your shoulder during 
these continuing days of depositions. I do not know of a single 
person who could have stood up to the questioning that you 
were put through and survived. If I had any doubts about your 



302 



FOUR YEARS LATER-WHERE ARE THEY NOW? B 

story before the depositions, I absolutely have no doubts now 
that you were and are telling the truth, and are possibly the 
single most important person in America who can document 
some horrible acts by some of our top government officials 
and government agencies. And though your particular case may 
not produce anything financial for you, the information you 
have laid out will one day be the starting point for major 
investigations of certain government agencies and their prac- 
tices which have been concealed from the American people. 
You Paul Bonacci, are the living history book, for example, 
for a program called 'Monarch' and someday the American 
people must and will have access to that story." 

The more than 2,000 pages of questioning of Paul Bonacci 
are today secret. Matters only hinted at in this book are devel- 
oped in detail there. 

Senator Loran Schmit was, as chairman of the State Legisla- 
ture's special committee investigating Franklin, a pillar of cour- 
age, without whom little or none of the truth would ever have 
emerged. The forces involved in the Franklin cover-up made 
sure he lost his 1992 race for the Senate, after having served 
for 24 years. They also bankrupted him through phony lawsuits. 
With my help, he defeated all these legal assaults, but the suits, 
along with the incessant attacks by the World Herald, took a 
toll. Senator Schmit now works as a consultant in Lincoln. 

Alan Baer paid a fortune to his attorneys and managed to 
get his charge reduced from felonies to a single misdemeanor 
for which he had to pay a $500 fine. Alan Baer has now become 
the major promoter for the gambling industry in Nebraska. In 
1996, Baer and gambling syndicate supporters spent millions 
of dollars to win a position on the ballot for a proposal that 
would have given the gambling syndicates power to allow any 
type of casinos or gambling enterprises into the state that they 
would choose; and power to regulate the new casino operations. 

As two former state senators, Loran Schmit and myself took 
out full-page ads in the World Herald denouncing the plan, 
and attacked Baer by name. 

On Friday, October 25, 1996, the gambling syndicates had 
made arrangements to appear before Federal Judge Kopf, who 



303 



THE FRANKLIN COVER-UP 



had sentenced Larry King, to obtain a federal court order to 
place the gambling referendum on the ballot November 5, 1996. 

Only a week before, I had put out a press release in which 
I publicly expressed my fear that the gambling syndicates would 
be successful in getting their proposal on the ballot, since many 
of the personalities involved in the syndicate, had also been 
involved, and protected, in the Franklin case. 

The release may be one reason why, when on Oct. 25, the 
syndicate went to get its expected order from Judge Kopf, he 
was nowhere to be found! It turns out he had checked himself 
into Bryan Memorial Hospital, with what was claimed to be 
a possible heart attack. When all deadlines for signing the order 
had passed, Judge Kopf remarkably recovered and was released 
from the hospital to resume his duties on the bench. 

U.S. Federal Magistrate Richard G. KopJ, as predicted in 
the first edition, leapfrogged ahead of others to win appointment 
as a federal judge by President George Bush, shortly after 
Kopf's sentencing of Larry King. 

U.S. Assistant Attorney Thomas D. Thalken, the federal pros- 
ecutor on top of the Franklin case, who had himself been named 
by investigator Gary Caradori's informants as being involved 
in pornography, moved ahead of five other candidates, to be 
appointed in October 1992 to replace Kopf as the new U.S. 
Federal Magistrate. 

Gerald Moran, Douglas County Prosecutor, also moved 
ahead of a host of others and was appointed a District Judge 
in Douglas County. His assistant, Robert Sigler, who had been 
described by Paul Bonacci as being in the middle ofthe Franklin 
affair, took over Moran's job of prosecuting Franklin-related 
victim-witnesses, particularly Alisha Owen. 

Omaha FBI head Nick O'Hara, who, as the saying went in 
Omaha, was closer to Omaha Police Chief Bob Wadman than 
"nineteen is to twenty," moved to Washington to become the 
head of Counter-Terrorism for the FBI, and then onto Minne- 
sota, to head up the state's Commission on Crime. 



304 



CHAPTER 20 



TROY BONER 
STEPS FORWARD 



Under immense pressure from the F.B.I., Troy Boner recanted 
the testimony he had provided Gary Caradori, about the crimi- 
nal activities of some of Omaha's elite citizens. His recantation 
was crucial to the Douglas County Grand Jury's findings of 
July 1990, that all the charges of child sexual abuse and related 
criminal activity was a "carefully crafted hoax." 

Later, a conscience-stricken Troy sought me out and re- 
stated his original charges. His story was recorded in an affidavit 
he swore before a notary public on October 27, 1993. This 
affidavit is printed in full below. 



Troy Boner, being first duly sworn, does depose and say of 
his own knowledge and experience as follows: 



REASONS FOR 
THIS AFFIDAVIT: 

I am making this affidavit freely and voluntarily and for the 
protection of myself and my family now and in the future; 
second, because it is right to do; and finally, because I want 



305 



THE FRANKLIN COVER UP 



to undo some of the damage and injury I have caused and to 
help force legitimate and honest investigations of such matters 
as my brother's death, Gary Caradori's death and all circum- 
stances surrounding my allegations herein, particularly the 
allegations that I lied to the grand jury and at the Alisha 
Owen trial but that such lies were caused by others including 
particularly the F.B.L I, and my mother and family, are ex- 
hausted from living in fear of death or injury as a result of my 
personal involvement in the Franklin matters which ended up 
in my testifying at the Grand Jury hearings as well as at the 
Alisha Owen Trial. I lied at the Grand Jury hearings and I lied 
at the Alisha Owen trial. I lied when I "recanted" my original 
testimony to Gary Caradori. I lied because I truly believed and 
still do believe that it was a situation where I must either "lie 
or die," and at the insistence primarily of the Federal Bureau 
of Investigation officials who were dealing with me at that 
time, specifically Mr. Mott and Mr. Culver. 

The purpose of this affidavit, very simply, is to provide John 
De Camp the information he requires to file an action seeking 
protection for me and for my family from various individuals 
and the F.B.I, so that my true story can be told without fear 
of death or injury to myself or my family and so that others 
in a similar situation to myself can also come forward safely 
and tell their stories which I believe will prove very clearly 
that what I am saying in this affidavit is true. I am also certain 
now that only by telling the truth as openly and publicly as I 
can will I ever stand a chance of providing protection for myself 
and my family for the future. I have asked John De Camp to 
do whatever is necessary to seek Witness Protection, including 
Federal Witness Protection if possible, for myself and my 
mother and my pregnant fiancee and child-to-be. Yes, I know 
full well the very great risk I run by taking this action but I 
and my mother and family can not go on the way we are and 
I can not live with myself unless I take this action. 

I will be as brief as possible in this affidavit but I will also 
try to answer the questions that have to be answered in the 
situation I am in. 



306 



TROY BONER STEPS FORWARD 



WHY JOHN DE CAMP 
IS MY ATTORNEY FOR 
THIS UNDERTAKING: 

I know some of the people I am accusing in this affidavit, 
and the legal action accompanying it, will immediately claim 
that John De Camp somehow contacted me and convinced me 
to take this action for his purposes. So he has told me. 

The exact opposite is true. Never have I spoken with John 
De Camp prior to this and he has never contacted me directly 
or indirectly. I had a friend of mine contact John De Camp 
several weeks ago and bring him to a meeting with me and 
my family at a secret location. At the time, John De Camp did 
not even know he was coming to meet me or my family. 
He thought he was being brought to meet a girl who needed 
representation on some matter. I searched him before our meet- 
ing began. We both agreed-with my entire family present- 
that anything said at the meeting could not and would not be 
recorded or ever used against me or to hurt me by John De 
Camp if I did not want to go ahead with this action. He agreed. 
I proceeded, along with my mother, to detail for John De Camp 
the fact that I had lied; why I had no choice but to lie; and 
many other facts. I then asked John De Camp whether he would 
represent me in helping to correct matters. I told him I went 
to him not because I liked him or knew him but because I felt 
he was the only honest one in this entire mess who could and 
would do something about my situation and who would not 
back down when the going got tough and who would "stick 
by me thru thick and thin if I (Troy) was telling the truth 
absolutely." He promised to do this so long as I told the truth 
and would agree to comply with any lie detector or other truth 
test he or any legitimate investigative officials might ask for 
no matter what and so long as I and my family were doing 
this action not for money damages but for our safety and 
to get the truth told and myself and my mother and other 
kids protected. 

John De Camp also told me that he could not and would 



307 



THE FRANKLIN COVER-UP 



not represent me and my family in this effort if he, De Camp, 
believed that I was lying or if he believed he had any conflict of 
interest between myself and any other clients of his, specifically 
Alisha Owen and Paul Bonacci. After researching and investi- 
gating what I, Troy Boner, had told him, De Camp said he 
would represent me and my family on a Pro Bono basis seeking 
only such compensation for representation as a Court might 
provide him. He also agreed to assist in any way he could 
personally in helping procure a secure and safe environment 
for me and my fiancee and child-to-be and to procure such 
other assistance for us as was possible thru social agencies or 
other groups or government agencies able to assist me and 
my family. He specifically refused in advance to provide any 
personal financial assistance in any way saying that he felt that 
would raise questions as to the correctness of his work on this 
case. I have included this information in this affidavit at his, 
De Camp's, request, to answer in advance questions he said 
others would ask. 



MY ORIGINAL STORY 
TO GARY CARADORI: 

What I told Gary Caradori in the original taped interviews 
Gary had with me was the truth. It is still the truth. From about 
age 14 to 17 I was seriously involved in sexual and drug and 
related activities with a wide range of individuals but primarily 
and specifically Alan Baer, Larry King, Robert Wadman, Peter 
Citron, Eugene Mahoney, and others of prominence and wealth 
whom I will identify for any legitimate investigative officials 
who seriously wish to correct the problems and stop the conduct 
these individuals are and were engaged in rather than cover 
up that conduct. 

1 1 has been repeatedly publicly stated that my story and the 
stories told by Alisha Owen, Paul Bonacci, and a large number 
of other young people not previously identified who were simply 
intimidatedfrom talking or who were ridiculed, were a "Care- 
fully Crafted Hoax." The stories were not a hoax. The only 



308 



TROY BONER STEPS FORWARD 



carefully crafted thing that occurred was in fact the cover-up 
of the facts and the subsequent conviction of Alisha Owen and 
the original Grand Jury Investigation. In short, there was a 
carefully crafted cover-up by the very people who were sup- 
posed to be exposing the conduct of these people rather than 
covering it up. And, yes, I was a very, very critical element 
in that cover-up but that participation by me was done because 
of threat and promise made to me primarily from the F.B.I. . 
and Mr. Mark Delman, the attorney arrangedfor me by others. 
I repeat. The original story I told on taped interview to Gary 
Caradori was in fact substantially the truth and substantially 
accurate. I say substantially because I am sure on some points 
I exaggerated and on some points I did not remember exactly 
the date or place or time of this or that event or particular 
person or persons involved. But, specifically, the material and 
substantive facts about the (1) Parties that took place at Twin 
Towers; (2) the use of myself and other children as drug couri- 
ers for Alan Baer and Larry King; (3) the involvement of 
Alisha Owen at the parties and as a drug courier also and her 
involvement with former Omaha Police Chief Robert Wadman; 
(4) my relationship with Alan Baer sexually and otherwise as 
well as the involvement of a number of other children with 
him; (5) Wadman's presence and participation at these parties 
in question; (6) my delivering Alisha Owen personally to Bob 
Wadman on several occasions; (7) my involvement sexually 
as a boy with Eugene Mahoney, the former Game and Parks 
man; (8) Peter Citron's presence and involvement in the parties 
and related sexual activities and filmings, were all true, correct 
and accurate on the mate rial facts. And, contrary to what the 
F.B.I, and others tried to get me to say and what I did say and 
in saying did lie about under pressure and threat and promise 
from the F.B.I, and others, Gary Caradori did not intimidate, 
threaten, coach, make up things or in any way improperly or 
falsely portray the information I provided him. He simply asked 
me to tell the truth, no matter what it was, and that is essentially 
what I did with him. He told me that was the law; that I had 
to report these things about Child Abuse under the state laws. 
But that was the only pressure of any kind he applied. And I 



309 



THE FRANKLIN COVER-UP 



know now it is the state law and all I want to do is comply 
with that law without fear of me or my family being hurt or 
killed for having complied with that law. 



MY CONTACT WITH THE 
F. B. I. AND WHY I LIE 
AFTER THAT CONTACT: 

After telling my story to Gary Caradori, I was assured that 
it was most important that everything I knew be kept absolutely 
secret. That I should talk to no-one or reveal what I had provided 
Caradori or the Legislative Committee. Everybody, including 
Caradori and the Committee and the Feds told me this. / know 
now that this was the stupidest thing I could do and that my 
following their very instructions to conceal things infact made 
me and my family subject to and victims of later threats and 
intimidation. That is one of the main reasons that I have defi- 
nitely determined that I will now conceal nothing from any 
legitimate investigative source-including the press. I am cer- 
tain that had the press really known what was happening and 
all the facts that they would have done a far better investigation 
than others and would not have allowed the cover-up to occur. 
I will explain later why I now believe this to be the case. 

In my first contact with the F.B.I., the F.B.I, officials, particu- 
larly Mickey Mott and Mr. Culver, made it clear to me that 
(1) They were only interested in disproving everything I had 
told them; that (2) they were taking the position that "... we 
know you are lying and we are only trying to figure out why 
and who is your leader who is having you lie"; and that (3) 
"if you will tell us you are lying then we will let you off the 
hook but if you insist on sticking with the story you told 
Caradori, then we will stick you in prison for a long, long time. 
What you told on your tapes to Caradori can land you in prison 
for twenty years each on a lot of different charges of perjury. 
If you insist on sticking with your story, you will go down. " 

When the F.B.I, dealt with me, they made it clear that they 
had the power to put me in prison-whether my story to Cara- 



310 



TROY BONER STEPS FORWARD 



dori was true or not- and the power to put Caradori and others 
in prison including Alisha for providing the information we 
did to Caradori. And they made it clear that was what they 
intended to do unless I "recanted" my original story to Caradori 
and the Legislative Committee. 

The F.B.I, in conjunction with my new attorney, Marc Del- 
man, who was arranged for me by others including particularly 
Frank Brown of the Television Station in Omaha, made it 
crystal clear to me that my only hope of staying out of prison 
was in "recanting" my original story to Gary Caradori, even 
though my story to Caradori was and is the truth. 

To make a long story short, I was put into the following 
situation by the F.B.I, and my attorney, Marc Delman, and I 
am confident in my own mind that they knew exactly what 
they were doing although I still do not understand all the reasons 
why they wanted me to lie or who they were doing this for: / 
had to lie to stay out of prison and I had to say that the truth 
was a lie and that the lies they wanted me to tell were the 
truth. So, when I went before the Grand Jury, at the insistence 
and instruction of Marc Delman and the F.B.I., I told the Grand 
Jury what the F.B.I, and Delman wanted me to tell the Grand 
Jury which is that the story to Gary Caradori was a "hoax." 
But, as stated, the exact opposite is true. 

Some time after my testimony to the Grand Jury, Gary 
Caradori was killed. I have no proof but I do believe he was 
deliberately killed. But, someone else will have to determine 
this because I acknowledge I have no information to prove or 
disprove this. Immediately after Gary Caradori was killed, and 
because I did believe he had been killed as part of a cover- 
up and as a result of my lies to the grand jury, I immediately 
called his home (from the Red Lion Hotel) at which time I 
spoke to his wife Sandie and told her I had in fact lied to the 
Grand Jury and that I was going to help straighten it out now. 
She suggested I go to Senator Schmit and provide him that 
information. This I immediately did and told Senator Schmit 
personally in his office that I had lied to the Grand Jury and 
that what I told Gary Caradori was the truth and that I only 
lied out of fear that the F.B.I, and others, particularly my 



311 



THE FRANKLIN COVER UP 



attorney Marc Delman, would hurt me or my family and particu- 
larly because they promised me they would put me in jail if I 
did not say what the F.B.I, and Delman wanted me to say 
which I, and I am sure they also knew was a lie. 

I also met Senator Bernice Labedz at the Caradori funeral 
and agreed I would meet her and Senator Schmit for lunch 
immediately following the funeral at which time we would go 
over my alleged "recantation" and I would provide her and the 
Committee all the facts. At the funeral, however, the F.B.I. 
agents, particularly Mickey Mott made it clear to me thru their 
actions that they knew what I was up to and gave me the clear 
impression that I was in "great danger" if I went ahead and 
met with the Legislative Committee and tried to tell them the 
truth. So, immediately following the funeral, I told my mother, 
who was with me, that we were not going to the meeting with 
the Senators and I was going to stick with my lies to the Grand 
Jury because of what I feared the F.B.I, or others associated 
with them or whom they were protecting would do to me or 
the members of my family. 

Later, Senator Labedz called me and asked why I did not 
show up at the meeting. At first I pretended like I did not know 
what she was talking about because by this time I was really 
scared especially because of Caradori's death. Then she said 
she knew I was scared. So I was honest and I remember I flat 
told her I was "scared" and could not do anything now. She 
said she felt sorry for me and that she understood. 

Then, Marc Delman and Mickey Mott saw Senator Schmit 
say on T.V. that I had been in his, Schmit's office, and that 
my "recantation" had been false. They both called me. Even 
though Marc Delman knew I had been at Schmit's office and 
that what Schmit was saying was the truth, he, Delman, asked 
me whether the conversation had been taped or whether there 
was any other record of my having been in Schmit's office to 
talk to Schmit. I told Delman there was no tape or any other 
record I had been with Schmit & that I had not signed anything. 
So, acting on Delman's instructions I publicly lied and denied 
any meeting or discussion with Senator Schmit and Delman 
publicly did the same and suggested Senator Schmit was lying. 



312 



TROY BONER STEPS FORWARD 



Delman then instructed me to deny that I was in Schmit's office 
and to simply imply that Schmit was lying about all these 
things. Delman's exact words to me were, "It's your word 
against his ... as long as there are no tapes." Mickey Mott the 
F.B.I, man also met again with me and again made it clear 
that if I told the truth-in other words, if I recanted my recanta- 
tion-that I was in big trouble and would go to prison and for 
the first time Mickey Mott said something I interpreted then 
and now to have been a direct and personal threat that later 
came to pass. 

When I told Mickey Mott and Culver the F.B.I, people one 
time when I was feeling a bit cocky about their threats to me 
that Alan Baer and others "could nOl afford" to do anything 
to hurt me now because too much publicity was focused on 
me and that they could not afford the risk of doing anything 
to me, Mott right away told me that they probably would not 
do anything directly to me, that instead "they will do something 
to a family member." And, of course that is what happened 
shortly thereafter after I had met with Schmit and talked to 
Sandie Caradori and when the F.B.I, and Delman and Baer 
and others thought I might break away from them, the F.B.I. 
and Delman, and tell the truth and confirm that I had lied when 
I testified to the Grand Jury. 

I am completely certain in my own mind, which I believe 
a decent and honest investigation will show, that my brother 
Shawn was killed as a message to me to stick with my lies 
and not to back down because they were afraid I might back 
down and tell the truth at the Alisha Owen trial. After Shawn 
got killed, I had no doubt at all that they really were as dangerous 
as I had originally feared; that they would do anything and kill 
anybody to keep the truth contained and to keep me lying for 
them; and I complied with every request they wanted me to 
do or say with respect to the whole so called Franklin thing. 

Before the Alisha Owen trial I was carefully rehearsed by 
the F.B.I, as to what I would say and what questions would 
be asked and then after rehearsing everything with the F.B.I., 
I was taken over to Mr. Moran the prosecutor to go thru the 
Rehearsal again. I do not know whether Mr. Moran knew I 



313 



THE FRANKLIN COVER UP 



was lying but for sure the F.B.I, had to know because they 
were the ones who forced me to "recant" in the first place and 
threatened me with prison if I did not. Additionally, the F.B.I. 
themselves had actual pictures of me and other prominent 
individuals in their possession including particularly Alan Baer 
(1983 picture of he and me in very pornographic sexual acts) 
as well as checks from Alan Baer to me. So, they had to 
absolutely know I had a relationship with him and that they 
were forcing me to lie when I denied such relationships. Addi- 
tionally, the F.B.I, had seized photos and tapes involving among 
others myself and a Mr. Andreasen and Larry King. These 
were video tapes of a party. And I know from having seen 
tapes at Peter Citron's house that the F.B.I, had access to 
tapes which clearly documented much of the conduct and the 
personalities I and other kids had identified as having occurred 
but which later I lied about before the Grand Jury and again 
at the Alisha Owen trial when I claimed- again to satisfy the 
F.B.I, -that the events never occurred. I do not know what 
the F.B.I, ever did with these pictures of me and Baer, for 
example, but I know they had them because I saw them. So, 
they, the F.B.I, had to know the real truth all along and had 
to know what they were doing when they forced me to lie. I 
am also sure that there are other pictures which would prove 
the things we kids told Caradori. Why do I say this? Because, 
the one thing I remember above all else is that these people 
like Baer, Mahoney, Citron, Andreasen, King, always loved 
to have pictures of themselves and others, particularly the kids, 
in weird sexual poses. 



MY CREDIBILITY AND 

THE CREDIBILITY 

OF THE OTHER KIDS: 

I know the first thing that the F.B.I, and Marc Delman and 
others involved in these Franklin and related matters will say 
when I submit my affidavit is something like: "You can't 
believe these kids and you can't believe Troy Boner now. If 



314 



TROY BONER STEPS FORWARD 



he lied once, he will lie again. He's a drug addict. He's a sex 
pervert. Who are you going to believe, these kids with their 
wild stories or respectable people like Alan Baer or the F.B.I. 
or Attorney Marc Delman? Besides, these kids were as guilty 
or more guilty than anybody else. They were using the drugs 
and they were selling their bodies and they were getting paid 
well for it and they did it all voluntarily." Or something like 
this is what they will say. I have heard it before. But, let me 
give the other side of that story. 

Yes, we kids, from early age, sold our bodies. We became 
drug addicts. We got lots and lots of money from these people. 
But today we are ruined because of that. And we were turned 
into sex perverts and drug addicts by these people. In my 
particular case, just like a lot of other young boys, I was directly 
turned into a true drug addict by Alan Baer. He was the one 
who first taught me to mainline and who first directly injected 
heroin directly into my veins-same as he did to a lot of other 
boys. He was the one who made me a prisoner of drug addiction 
to where he could completely control me and use me to deliver 
drugs or deliver sex or anything else. Sure, he paid me well, 
but he also destroyed me in the process. It was Alan Baer who 
first injected me with a "speed ball", for example. A speed 
ball is a heroin/cocaine mix that zips you up immediately but 
brings you down mellow. And it was Marc Delman, my attorney 
arranged for me by others who claimed lowed him more than 
$500,000.00 for work he did protecting me, when what he 
really was doing was having me lie to protect others. 

But to those who really want the truth it really is all there 
for you to find out if you will only check on the things that 
are available. And the truth is the truth whether it is told by 
us street kids whom you may not want to believe or the richest 
and most powerful people in Omaha who you think you have 
to believe. Same with a lie. 

So, here are some things that any honest investigator can 
check out to see who is lying and who is telling the truth. 

I. Marc Delman wrote my script for the [TV] program 48 
Hours wherein I claimed that the entire story of myself and 
the other kids was a "hoax." He promised me ten or fifteen 



31 S 



THE FRANKLIN COVER UP 



thousand [dollars] for this. I got virtually nothing. 48 Hours 
told me that they had "paid my attorney." There should be 
records on this. I think Marc got about $10,500.00 for doing 
that. And as everyone knows, the 48 Hours program was played 
on television just before the Alisha Owen jury began their 
deliberations. Marc Delman also claimed that I had not met with 
Senator Schmit to tell the truth and I followed his instructions in 
denying it also. This sure can be checked out. There were 
people who saw me with Schmit. Same with my contact with 
Senator Labedz. 

II. I saw the picture the F.B.I, had of me and Alan Baer. 
Some official sure ought to be able to get this picture to prove 
who is lying-me or the F.B.I. 

III. Lots of kids, other than myself and Alisha and the ones 
who tried to come forward and tell the truth, know about Alan 
Baer, Larry King and the major drug dealing activity they and 
other prominent people were involved in. But, as long as they 
are scared for their lives because of what happened to Alisha 
and me, they are not going to say anything. If an honest prosecu- 
tor would step in and offer immunity and protection to these 
kids, many of them young men and women now, I am sure 
the entire network of drug dealing, use of kids for sex, and 
related things could be proven and corroborated to every- 
body's satisfaction. 

IV. But, maybe the most important thing that any honest 
investigator should do is to ask me, Troy Boner, or any of the 
other kids such as Alisha or Paul Bonacci, to take polygraph, 
lie detector, tests side by side on the same questions with the 
people we are accusing of these things. Example, ask Alan 
Baer if he shot mainline drugs into me and if he is a major 
drug dealer and if he had sex with me. Ask Eugene Mahoney 
if he met me at the book store in Council Bluffs and used to 
regularly pay me to have sex with him as a boy? Ask [. ..] to 
take a polygraph test on whether he is a big-time drug dealer. 
Ask the F.B.I, guys to take a polygraph test on whether they 
threatened me with jail if I did not say the things they wanted 
me to say which things were a lie. Ask Marc Delman about 
the 48 Hours thing and the Schmit meeting. 



316 



TROY BONER STEPS FORWARD 



Obviously, either us kids are lying or the rich prominent 
people are lying. And just because they are rich and prominent 
does not mean they are telling the truth or because we are 
thought of as scum and kids who were supposedly all willingly 
involved in the drug trafficking and sexual activity does not 
mean we are lying. And like it or not, if we are not worth 
protecting then other young kids now and in the future will not 
be worth protecting either; and the prominent and respectable 
citizens who took us as children and made us a part of this 
drug dealing and sex abuse activity will continue without fear 
to do the same. Maybe to your children next time. 

I promised my mother and myself after my lying at Alisha 
Owen's trial caused her to get convicted that if I ever got the 
chance to straighten things out I would come forward and do 
it and set the record straight. I owe it to my brother Shawn. 

A couple months ago I met investigators from a British 
Television Broadcasting Company. They convinced me that 
they honestly wanted to tell the true story no matter what that 
story was. 

I believed after talking with them that my and my family's 
safety lies in telling everything particularly to press sources 
outside Nebraska and not controlled by Nebraskans. I have 
done this in many hours of tapes with them. They have checked 
on many of the matters I told them about-not dealt with in 
this affidavit- and have satisfied themselves that I am telling 
the truth about my lying to the Grand Jury and to convict 
Alisha Owen and the reasons why I had to lie, just as I have 
explained in this affidavit. The reason I mention this is simply 
to establish that eliminating me or any member of my family 
will do nothing to suppress the information or keep me from 
reporting it because I have already done so in many hours of 
tapes which have been taken outside this country but which 
will be made available to Federal Authorities and legitimate 
investigators here and in Washington, D.C. 

But right now, I need protection for myself and my family 
so that I can tell the truth totally and without fear of being 
punished or jailed for doing it. That is the purpose of this 
affidavit. To help Mr. De Camp in filing the proper papers to 



317 



THE FRANKLIN COVER UP 



seek that protection. Mr. De Camp has discussed with me the 
fact that someone may attempt to file perjury charges against 
me for taking this action at this time. I understand that. I want 
to repeat one final thing: I told the truth to Gary Caradori. I 
tried to tell the truth to the F.B.I, and Marc Delman but they 
did not want to hear the truth and the only thing they wanted 
was to have me say the truth was in fact a hoax; and they 
scared me with threats of jail and other things into lying to the 
Grand Jury and then later into lying for them at the Alisha 
Owen Trial. I want to tell the truth without fear and to help 
other kids who are and were in the same situation as I am and 
was. That is the reason I am doing this. 

STATE OF NEBRASKA 
COUNTY OF DOUGLAS 

Before me a Notary Public on this 27 day of October, 1993, 
personally appeared Troy Boner, to me personally known, who 
executed the above affidavit, affirmed the truthfulness of the 
statements made therein, affirmed that he was voluntarily and 
willingly signing the affidavit and doing it for the purposes 
stated therein. 

Troy O. Boner 

Dated and signed this 27 day of October 1993 by Notary Public 
Maryann Versaw, State of Nebraska 



In Chapter 17, "So the Truth Would Never Come Out," the 
last chapter of the first edition of this book, I charged that "in 
the case of Larry King and the cadre of people he dealt with 
closely, boys and girls like Paul Bonacci, Troy Boner, Danny 
King, and Alisha Owen were used as drug couriers for a national 
program of illegal narcotics marketing. They were 'throw-away 
kids.' Because they were teenagers and younger when they 
were doing this activity, they provided a perfect insulation 



318 



TROY BONER STEPS FORWARD 



blanket between the real drug czars, like Larry King or Alan 
Baer, and the law." 

In August 1996, events were to provide dramatic new evi- 
dence about this "national program of illegal narcotics mar- 
keting." 



319 



CHAPTER 21 



DRUGS AND THE 
MONARCH PROJECT 



On August 18-20, 1996, a California newspaper, the San Jose 
Mercury, published a series of articles implicating elements of 
the U.S. government in running tons of cocaine into U.S. cities 
during the 1980s. Based upon recently declassified government 
documents, eyewitness reports, and court records, Mercury 
reporter Gary Webb provided a detailed account of how the 
Contras financed their war against the Sandinista regime of 
Nicaragua by flying tons of cocaine into the West Coast, where 
it would be turned into the deadly, instantly addictive "crack," 
and sold to such street gangs as the Cryps and the Bloods. 

All of this began after the U.S. Congress in the early 1980s 
passed the Boland Amendment, which stopped all official fi- 
nancing for U.S. intelligence's "covert war" in Nicaragua. The 
whole project was taken "off-line," and financed by drug 
sales-the subject of Webb's articles. 

Indignation exploded when the Mercury series hit the streets. 
Maxine Waters, Congresswoman for South-Central Los 
Angeles, one of the areas hardest hit by crack and drug-related 
violence, sent a letter to Central Intelligence Agency chief John 
Deutsch demanding an investigation of the Agency, in which 
she said, someone who has seen how the crack cocaine 

trade has devastated the South-Central Los Angeles commu- 
nity, I cannot exaggerate my feelings of dismay that my own 
government may have played a part in the origins and history 
of this problem. . . . The impact and the implications of the 
Meneses/BlandonlRoiss Contra CIA crack cocaine connection 



320 



DRUGS AND THE MONARCH PROJECT 

cannot be understated. We all have an obligation to get to the 
very bottom of the origin, development, and implementation 
of this seedy enterprise." 

While many were shocked at the news of apparent U.S. 
government drug-pushing, to me it was one more confirmation 
of a key aspect of the Franklin case. As I had discovered early 
on (as had Gary Caradori), the sexual abuse of children was 
only one of the Franklin story. During the 1980s, many 

of the children, such as Alisha Owen and Paul Bonacci, said 
that they had been used as drug couriers to bring cocaine in 
from the West Coast for Alan Baer, Larry King, and others. 

Then, on September 1 1 , 1996, in Philadelphia, Pennsylvania, 
Representative Harold James, chairman of Pennsylvania's Leg- 
islative Black Caucus, and a former undercover narcotics cop 
himself, also put out a call for an investigation. In the course 
of that press conference another name popped up, that I knew 
well from the Franklin investigation: George Bush. 

Flanked by political leaders of both the city and the state, 
James declared: 'As a retired undercover Philadelphia police 
officer who worked on narcotics cases, I know we can better 
impact the flow of drugs if we stop drugs from coming into 
this country, arrest those at the top levels of control, and punish 
the white-collar dealers who try to keep their hands clean while 
they run the entire operation. On this occasion, we must not 
allow anyone to use the pretext of national security to accom- 
plish another cover-up. We need an investigation that goes 
right to the top." 

As to where the "top" might be, James charged, in his release 
to the press, "previous investigations of the Iran-Contra scandal, 
particularly the U.S. House and Senate joint hearings in 1987, 
revealed the central role played by then Vice-President George 

Bush in covert intelligence operations One of Bush's key 

lieutenants was Oliver North. Bush was also appointed by 
Reagan to run the National Narcotics Border Interdiction Sys- 
tem, which supposedly coordinated efforts of all federal, state 
and local anti-drug agencies, especially along the south Florida 
coast. Bush was responsible for the White House anti-drug 



321 



THE FRANKLIN COVER-UP 



effort while, at the same time, according to the recent newspaper 
reports, tons of cocaine were allegedly supplied to street gangs 
by CIA-related networks." 

Concluded James, "There's something wrong with this pic- 
ture." In response to a question from one of the ten reporters 
in attendance about the role of Bush, Philadelphia City Council 
President John Street replied, "If George Bush is involved in 
it, someone should find it out. This kind of activity has been 
going on for well over a decade." 

Lt. Col. Oliver North-whom at least one witness reported 
seeing at a party thrown by Larry King-had overseen the 
Contra resupply effort, and had been fully aware of the plane- 
loads of drugs coming into the United States. A U.S. Senate 
subcommittee report under Massachusetts Senator John Kerry 
cited extensive evidence that the Contras were involved in 
drugs, and North had noted the fact in his publicly exposed note- 
books. 

From what I know from my own corner of the world, there 
is excellent reason to investigate Bush for possible involvement 
in the dope business. Think back to what I reported in Chapter 
13, "The Washington Connection," about how George Bush and 
Larry King were linked in multiple ways, including eyewitness 
reports placing Bush at King's sex parties. Think about the 
constant rumors that King was financing the Contras, who have 
now been proved to have been running dope by the ton. 

The first investigative reporter to ever look at Franklin, the 
World Herald's James Flanery, told associates that King was 
"running guns and money into Nicaragua," and that the CIA 
was heavily involved. (Flanery was soon taken off the story 
and shipped out of state for a year.) 

Records exist to show that Larry King was a top contributor 
to a Contra "support committee," the Citizens for America 
(CFA). King's own public relations firm was also used by 
the Contras. 

I became convinced early on that King was deeply involved 
with the Contras. I am reminded of the phone call State Senator 
Loran Schmit received on the Senate floor as the Franklin case 
was just beginning to break. The caller warned him off the 



322 



DRUGS AND THE MONARCH PROJECT 

case, because "it would lead to the highest levels of the Republi- 
can party." I am reminded of when Larry King was finally 
arrested-just as he was about to go to a breakfast party in 
Omaha for his buddy, George Bush! I am reminded of the 
reports I used to hear that certain people in Omaha were charg- 
ing that Omaha Police Chief Bob Wadman was protecting the 
expansion of the Cryps and Bloods into Omaha-far from their 
home turf of Los Angeles. 

So, was Larry King's buddy George Bush the country's 
"drug kingpin" in the 1980s? I don't know. But what I do 
know, is that if Bush were running the Contra affair, and drugs 
were a big part of it, that would certainly jibe 100% with 
everything known or rumored about Bush, Larry King, and the 
Franklin Credit Union. Congresswoman Maxine Waters and 
Representative Harold James are right-let's investigate! 



As follow-up investigation from the Franklin case shows, 
drugs are not the deepest level of government-sponsored evil. 
I think the lowest level of Hell is reserved for those who 
conjured up and carried out the "Monarch Project." 

"Monarch" refers to young people in America who were 
victims of mind control experiments run either by U.S. govern- 
ment agencies such as the Central Intelligence Agency, or 
military intelligence agencies. 

The story told by Monarch victims -one of whom is Paul 
Bonacci-is that they were tortured/or the purpose of creating 
"multiple personalities" within them. These multiple personali- 
ties could then be programmed as desired-as spies, "drug 
mules," prostitutes, or assassins. 

Because of legal cases still pending, I am severely limited 
in what I can say about the Monarch Project. Suffice it to say 
at this point: 

Major intelligence programs in this country did and do exist 
for the purpose of protection of this country and to learn what 
other countries, particularly our Cold War enemies, were doing 
in this area of mind control. 



323 



THE FRANKLIN COVER UP 



I asked Bill Colby to tell me what he could or would, about 
this. He said: 

"Of course the CIA in particular was involved in investigat- 
ing, learning and, on occasion, using, everything we could 
learn about mind control-and with extremely good reason. 
Following the Korean War, this country's military and intelli- 
gence communities went through a period of absolute paranoia 
about just how far our enemies were ahead of us in mind 
control and related activities. 

"There was no particular program called 'Monarch,' contrary 
to what you want to think. 'Monarch' was merely a name that 
some participants in the program-who knew very little about 
it, other than from their own limited participation-were given 
to identify themselves. But, as far as the CIA was concerned, 
there was no such program named 'Monarch.' 

"But, with respect to mind control, I will tell you that this 
country spent millions upon millions supposedly catching up 
to our Cold War adversaries, because we believed they had 
developed mind control technology which exceeded anything 
we had. In fact, we at the Company [CIA] truly believed for 
a substantial period of time, that technology and techniques 
and drugs had been developed by Russia which would enable 
them to have agents who in fact really were able to have and 
use ESP-extra sensory perception. 

you imagine," Bill continued, "how dangerous for this 
country it would be if you could have had someone meeting 
the President of the United States, who was actually able to 
read what was in the President's mind? 

"I know," Bill continued, "it may sound silly today to get 
all carried away with this fear; but I can tell you that we took 
it all very seriously and believed this ESP thing for some 
significant time period. 

"I will tell you one other thing," Bill said, somewhat omi- 
nously, "we are not behind in knowledge of mind control. In 
fact, we never were, but we only found that out much later, 
after we had poured incredible resources into this area. And 
yes, I am sure, there were some problems and abuses that 
occurred and we will talk about them at another time." 



324 



DRUGS AND THE MONARCH PROJECT 

We did have that other talk. And, I intend, when I am freed 
from court restrictions, to tell that entire story in an upcoming 
book. I have deposited extensive documentation on the Mon- 
arch Project with people who have the means, the motivation, 
and, most importantly, the guts, to print the entire story, should 
I suffer an "accident" before I get around to it. Here, I will 
merely quote from the work of one of America's finest investi- 
gative reporters, Anton Chaitkin. 

I had known of Chaitkin, who writes for Executive Intelli- 
gence Review magazine, from the book he co-authored with 
Webster Tarpley, George Bush: The Unauthorized Biography. 
This 659-page-book is a devastating expose of Bush, and it 
played a notable role in helping to shape the 1992 presidential 
campaign, which Bush happily lost. 

Perhaps it was because the name "Bush" was all over the 
Franklin scandal, that Chaitkin showed up one day in my Lin- 
coln law office. I told him, "Look, I know you have been in 
some tough spots before, but are you really sure you want to 
poke around in this? This question of 'mind control'-the 
Monarch Project-is the most scary and dangerous thing I have 
ever encountered." As I came to know Anton, probably all that 
little lecture did was to spur him on. Chaitkin got his story on 
the Monarch Project, and printed it in the December 13, 1993, 
New Federalist newspaper under the headline, "Franklin Case 
Witnesses Implicate FBI and U.S. Elites in Child-Torture and 
Murder." Here follows an abbreviated version of that article: 



WHAT IS THE 

FBI PROTECTING? 

Since the 1992 publication of John DeCamp's book, The 
Franklin Cover-Up, Paul Bonacci has filed new affidavits and 
has given extensive interviews to investigators including report- 
ers for Executive Intelligence Review and New Federalist. Bo- 
nacci's disclosures have been cross-gridded with evidence sup- 



325 



THE FRANKLIN COVER UP 



plied by authorities in law enforcement, psychiatry, and the 
intelligence community. The result goes a long way to explain 
the high stakes involved, and the frantic nature of the Franklin 

cover-up 

Paul Bonacci has described in detail being dragged to Wash- 
ington for use as a sex toy for Larry King's clients. Bonacci 
told investigators he was in one of the private White House 
tours for young male prostitutes conducted by lobbyist Craig 
Spence, a close political associate of Larry King in the cloak- 
and-dagger Contras enterprise. Spence turned up dead in a 
Boston hotel room in 1989, soon after his and King's "compro- 
mising" business was exposed in a Washington Times June 
29, 1989 story, headlined: "Homosexual Prostitution Inquiry 
Ensnares VIPs with Reagan, Bush." 



'MONARCH,' OR, 
AUSCHWITZ-TAKE 2 

From very early childhood, Paul Bonacci was subjected to 
tortures as profound as any the Nazis inflicted on their captives. 
This is not merely a comparison; rather it is an actual continua- 
tion, as we shall see. From sexual degradation, from witnessing 
and forced participation in Satanic cult murders, Bonacci suf- 
fered the cracking of his mind into what is called "multiple 
personality disorder" (MPD). Tens of thousands of American 
children have been diagnosed MPDs; virtually all of them are 
thought to have resulted from sexual abuse, of which perhaps 
85 percent were cases of Satanic ritual abuse. 

Psychiatric professionals specified in Paul Bonacci's legal 
proceedings that through it all, Paul's different "personalities" 
have emerged incapable of lying, with an ultra-sharp memory. 

In one instance detailed in The Franklin Cover-Up, Paul 
was taken by Larry King and others to a wooded area in 
California-identified after publication as the Bohemian Grove. 
There Paul and another boy were forced to do sex acts with 
and to consume parts of a child whom they had watched being 



326 



DRUGS AND THE MONARCH PROJECT 

murdered by the cultists. The body was to be disposed of by 
"the men with the hoods." A "snuff pornography film was 
made of these events; it was directed by a man the party 
had picked up in Las Vegas whom Paul identified as "Hunter 
Thompson "-the same name as a well known sleaze-culture 
figure. 

Paul has told investigators that the ring which plunged him 
into Satanism was centered at Offutt U.S. Air Force Base near 
Omaha; that he was taken to Offutt to be sexually victimized 
by a babysitter's boyfriend when he was about three years old, 
around 1970. Offutt is the headquarters for the Strategic Air 
Command, and has had a cadre of thousands of intelligence per- 
sonnel. 

At Offutt, and later at other military installations, Paul says 
this ring "trained" him by tortures, heavy drugging, and sexual 
degradation, while instructing him in military arts including 
assassination. In fact, his personal knowledge in these realms 
can scarcely be accounted for other than by crediting the indict- 
ments he has made. 

Larry King, FBI agent Gerry Wahl, Alan Baer, Harold An- 
dersen, and former Omaha Police Chief Robert Wadman have 
all been reported as collaborators with this Satanic military- 
based ring. King reportedly told Paul's captors at Offutt, "He's 
young-but you trained him good." A member of Nebraska's 
Concerned Parents group reported hearing from two North 
Omaha witnesses that "King used to send limousines down to 
Offutt Air Base to pick up CIA agents for parties." Larry King 
reported his own adoring relationship to the late CIA Director 
William Casey in a Sept. 7, 1988, interview in the Omaha 
publication Metropolitan. 

Psychiatrists who have treated a growing number of MPD 
cases, victims of Satanic ritual abuse, report an alarming pattern 
of findings in many of their child patients. There is a structure 
to the personalities, conforming to what is evidently a deliberate 
breaking and reshaping of the mind. This phenomenon was 
identified to Paul Bonacci by his tormenters, and to other vic- 
tims and witnesses, as the "Monarch" project. At Offutt Airbase, 



327 



THE FRANKLIN COVER-UP 



Paul was told that what he and other children were being 
subjected to was in aid of national security. 

The use of mind-altering drugs, sensory deprivation, and 
other brainwashing techniques on U.S. citizens as subjects was 
the admitted practice of the CIA, certain military arms and 
private institutions joined in the MK-ULTRA, Artichoke, and 
Bluebird projects beginning in the early 1950s. A national 
security pretext often cited was the need to keep up with the 
Soviets in the race to develop a workable Manchurian Candidate 
human robot. With the "Monarch" (or whatever official title 
may be attached to it) project, the idea is extended to the 
production of a horde of children in whom the soul is crushed, 
who would spy, whore, kill, and commit suicide. 

The material presented here, on this subject, must be under- 
stood to be only a bare introduction to a complex story with 
immense political and strategic ramifications. It is a beginning. 

Professionals probing the child victims of "Monarch" say 
there are clearly two responsible elements at work: the govern- 
ment/military, and cooperating Satanic (or more exactly pagan) 
cults. These are multi-generation groups, where parents donate 
their own children-who are proudly called "bloodline" or 
simply "blood" cultists-to be smashed with drugs and elec- 
tric shock, and shaped. Other children are kidnapped and sold 
into this hell, or are brought in gradually through day-care situa- 
tions. 

Paul Bonacci and other child victims have given evidence 
in great depth on the central role of Lt. Col. Michael Aquino 
in this depravity. Aquino, alleged to have recently retired from 
an active military role, was long the leader of an Army psycho- 
logical warfare section which drew on his "expertise" and 
personal practices in brainwashing, Satanism, Nazism, homo- 
sexual pedophilia and murder. 

A former director of the CIA was asked directly, "what 
about 'Monarch' "? He replied angrily, and ambiguously, "We 
stopped that between the late 1960s and the early 1970s." If 
a statement of fact, this would presumably relate to official 
participation of the CIA. 



328 



DRUGS AND THE MONARCH PROJECT 

SOME CODES AND 
ASSIGNMENTS 

The disclosures of Paul Bonacci, which cohere with reports 
of MPD professionals in other cases, point to a particular artifi- 
cially induced mental structure as common to many victimized 
children. Space permits only the briefest treatment of this here; 
this is intended mainly to begin to "blow the circuits," so to 
speak, when followed up by professional therapists and investi- 
gators. 

These are some of the widely occurring separate "persons" 
which have been formed under torture, and the correspond- 
ing "triggers": 

• General personality-accessible under the code name 
ALPHA, with possible Alpha-DOl, Alpha-009, etc. "persons" 
with distinct task orientations. 

• Sex programs, accessible through code name BETA; par- 
ticular programs (and thus commands) are for pornography, 
acting, oral sex, etc. 

• Assassination programs, utilizing very specific modes, and 
espionage, accessible through code DELTA. 

• OMEGA, self-destruction programs, ranging from self- 
mutilation to suicide by many different specific possible acts. 

• GAMMA, system deception, amnesia and disinformation 
programs. Under this or other codes are track-covering false 
origins for the structure, giving the child memories of torment- 
ers dressed as space aliens or Mickey Mouse or in Wizard of 
Oz costumes. 

There are said to be such other personality levels as Master 
Programmer, Black Master, and different mental levels of 
backup programs. There are reported to be personnel who have 
large numbers of child-victims' assignments and triggers neatly 
filed in their little computers. 

Paul Bonacci reports the following "Monarch"-related activ- 
ities, often involving his "Commander" at Offutt AFB, Bill 
Plemmons, and Lt. Col. Michael Aquino: 

• Picking up cash in exchange for drugs at various Tennessee 



329 



,THE FRANKLIN COVER-UP 



locations. Bonacci identifies several country music personali- 
ties as contacts. 

• Trips on behalf of the North American Man-Boy Love 
Association (NAMBLA), the pedophile group now given semi- 
official status by the United Nations. Paul cites travel to the 
Netherlands and Germany carrying child pornography for sub- 
sequent "import" to the U.S.A. to avoid prosecution. In Amster- 
dam, he names "Charles Hester," and the British "Tommie 
Carter," who had on computer a global list of child pornography 
users. NAMBLA is also cited for organizing auctions of 
children. 

• Travel to Hawaii, New York, Washington (in connection 
with Craig Spence) to compromise public figures by performing 
homosexual pedophile sex with them. 

• The trip to California where the boy was ritually murdered, 
accompanied by "Monarch" contact, Mark Johnson of Den- 
ver, Colorado, 

• Travel to Mexico for the transportation of drugs, guns, 
and children. Paul was accompanied by the gangster-figure 
"Emilio," who otherwise directed the kidnapping of Johnny 
Gosch of Des Moines, Iowa. Johnny Gosch's parents commend 
Paul Bonacci as an accurate witness relative to that crime. 

• Training under "Captain Foster" (survival skills) at Fort 
Riley, Kansas, under "Lt. Dave Bannister" (intelligence) at 
Fort Bragg, North Carolina, under "Col. Harris Livik" at Fort 
Defiance, Virginia, who is said to run a military school and to 
have housed "Monarch" boys. "Col. Bill Risher" of Bamberg, 
South Carolina, is said to have supplied children for Mi- 
chael Aquino. 

• Travel to Dresden in communist East Germany, where 
weapons were inspected. There and in the Federal Republic of 
Germany, the "Monarch" personnel were frequently neo-Nazis. 
This milieu is a special project of Lt. Col. Aquino, who was 
a West European adviser to the U.S. Chiefs of Staff. Paul 
Bonacci has extensive experience in the Aryan Nation and 
other White Supremacist cults. 

An account of the origin of the "Monarch" project has been 
compiled by those who have been debriefing MPD child-vie - 



330 



DRUGS AND THE MONARCH PROJECT 

tims. Nazi experimentation in World War II concentration 
camps were said to have gone beyond simply insane physical 
tortures. They brainwashed people, for military and strategic 
purposes. After the war, Allen Dulles and other Western intelli- 
gence people brought Nazi doctors out for use in the United 
States. A teenaged concentration camp inmate named Green- 
baum, who had participated to save himself, also came to the 
United States. Known later as "Dr. Green," he became a high- 
level brainwasher, and is widely represented in brainwashing 
programs with a distinctive Cabalistic magic theme. 

The precise details of these horrors lie deeply buried in 
national security archives. But this history, as told to psychia- 
trists, dovetails with what is definitively known about Anglo- 
American intelligence operations and the German Nazis. And 
once again, the story goes right back to Nebraska. 

The killers in the Nazi camps were themselves trained and 
organized by psychiatrists and eugenicists, operating from the 
"T4" bureau. These psychiatrists had long been the pets of 
white supremacist British and American financier networks. 

At least some of these Nazi doctors were spirited out of 
Germany under the supervision of former Bank of England 
Governor Montagu Norman and Tavistock Institute Director 
John R. Rees on behalf of the British government. Norman, 
personally an insane Theosophist who had been chief of the 
prewar pro-Nazi faction within England, and Rees organized 
postwar propaganda and continuing psychological warfare ac- 
tivities, and created "Orwellian" groupings within U.S. psychia- 
try and mental health fields. 



331 



CHAPTER 22 



FROM MONTANA TO 
OKLAHOMA CITY 



Within hours after the bomb-or bombs-exploded in front 
of the Federal Building in Oklahoma City, on April 19, 1995, 
FBI agents were in my office in Lincoln, Nebraska, seeking 
my assistance to identify the bombers. 

Why would the FBI come to Lincoln, Nebraska, to see a 
lawyer named John DeCamp on a bombing in Oklahoma? 

Just weeks before, I had successfully represented the leader- 
ship and members of a group identifying itself as the Militia 
of Montana (MOM), in one of the strangest cases in which I 
had ever been involved. 

It was through reading the first edition of The Franklin 
Cover-Up, that the Militia of Montana got my name and sought 
my assistance. Until they called me in early 1995, I had not 
even known that militias existed in this country nor, of course, 
that these "militias" were being closely watched by the FBI 
and Bureau of Alcohol, Tobacco and Firearms (ATF) and being 
viewed as a national security danger. 

The Militia of Montana contacted me in a state of terror 
after their leaders and leaders of another group identifying 
themselves as "The Freemen," were physically assaulted, 
seized, and arrested in the town of Roundup, Montana, in early 
January 1995. 1 was shocked, as I listened to the story of their 
arrest, imprisonment and physical abuse by public officials. 

Why? Because these men were arrested and tortured, put 
under bond requirements in the range of hundreds of thousands 
of dollars, charged with the crime of sedition with mandatory 



332 



FROM MONTANA TO OKLAHOMA CITY 

10- and 20-year prison terms, and were about to go to trial. 
My question was, "For what?!" It quickly evolved that their 
"crime" was that they had met with individuals like them- 
selves-not for any actual violation of the law. 

As I investigated, and learnedjust how unconstitutional these 
arrests were, I agreed to take their case-even though I did 
not necessarily support, or even know, their beliefs or philos- 
ophy. 

Why did I do this? 

I have always been a zealous defender of the First Amend- 
ment-Freedom of Speech, Press, Assembly. This Militia of 
Montana case convinced me that irrespective of what I person- 
ally thought about the beliefs of the MOM Leaders or the 
Freemen, these individuals had done nothing wrong, but were 
classic victims of improper government arrest, harassment, and 
abuse. As the case went on, I became very assertive on behalf 
of these men, angered by what had happened- and was still 
happening-under color of law. 

Soon, the major media focused attention on the case, telling 
wild lies about the facts of the incident surrounding the arrests. 
In February and March and April of 1995, talk shows repeatedly 
requested me to explain the true story, which I did. Meanwhile, 
militia groups from across the United States began marshaling 
to come to Montana, and to deal with the imprisonment of the 
MOM and Freemen in some fashion outside the court room; 
this caused me grave concern. 

The Attorney General of Montana became involved in the 
case, along with federal officials at various levels, who fever- 
ishly worked to create a case to justify the imprisonment and 
abuse of these men. 

As the deadline approached for determining whether there 
was to be a full scale trial to attempt to permanently lock these 
men up, I, acting as their attorney, gave a written ultimatum 
to the Attorney General and to the Governor of Montana. 

I reprint it here, just as I delivered it to the Attorney General, 
the Governor, and to the Montana State Legislature: 



333 



THE FRANKLIN COVER UP 



Memorandum from: 

JOHN W. DECAMP, ATTY/"MONTANA SEVEN" 

To: John ConnorlMontana Atty. Gen'l office 

Helena, Montana 
Copies to: Montana SenatelHouse/Govemor 
Re: Montana Seven case 
Request for dismissal of charges 
Offer of Settlement on probable civil rights case 

Dear John: 

As I have promised, I have investigated thoroughly the situa- 
tion on these charges and would like to make the following re- 
quest: 

/ would respectfully request that all charges of any nature 
filed against my clients be dismissed as soon as possible and 
that any and all personal property of my clients still held be 
returned. I would also, on their behalf make the following 
offer to resolve in advance any civil rights litigation that my 
clients may initiate against the entities involved in the episode 
of arrest, incarceration, charges, that occurred: 

If the State would make a public apology to them, explain 
to the public the real truth on what occurred and why it occurred, 
insure the dismissal of the two MusselShell County deputies 
involved, and pay the sum of $1.00 (One Dollar) to my clients, 
they would waive their civil rights case that we believe they 
absolutely have against the various entities and personalities 
involved in this most interesting story. 

Having said these things, John, let me present to you first 
the results of our/my investigation as well as some surprising 
offers and requests that I doubt any defendants have ever offered 
in Montana-or maybe anywhere else, for that matter. 



SITUATION: 

HWe believe the episode culminating in the arrest and filing 
of charges against the "Montana Seven" began with: (1) A 
Con Job by a long-time repeat offender, (Call him John Doe), 



334 



FROM MONTANA TO OKLAHOMA CITY 

who was arrested and incarcerated again on or about late Feb. 
1995 for serious spousal abuse. John Doe had become 

obsessed with a jealous rage and anger because he believed 
that a certain individual, one of the Montana Seven and a so- 
called Freeman had a "Relationship" with his wife that he did 
not sanction while he, John Doe, was previously incarcerated. 

John Doe also knew that the charges he was facing were very 
grave. More important, John Doe knew that the MusselShell 
Sheriff's office (particularly Deputy Buzz Jones) was himself 
obsessed with concerns and fears and hatreds of the Freeman 
and/or the Montana Militia. 

John Doe solved his incarceration problem by spinning a 
tale for Deputy Jones-and later others-to the effect that the 
Freemen were on the verge of kidnapping and hanging public 
officials, particularly a Judge, as well as robbing banks and 
doing any sort of other dastardly deed that John Doe could 
spin a tale about and which MusselShell officials were ready 
to lap up without proper investigation or analysis. Naturally, 
John Doe identified his former friend, one of the Montana 
Seven and a Freeman, as one who was to be involved in this 
tale of terror-and described well his truck, items in it, etc- 
including a pile of money, gold and guns to watch out for. 
And thus, with one fantastic-though fantasy-tale, John Doe 
solved his incarceration problem and his jealousy problem, we 
believe the evidence will clearly show and which we believe 
the state is now aware of. 

And, with fears being driven by the Con Job of John Doe 
on certain public officials, on Feb. 27, 1995, warnings were 
issued from Federal and Other officials that armageddon was 
about to descend upon poor little Roundup from an invasion 
of the Freemen or Montana Militia, or whoever. 



FICKLE Fl NGER OF FATE: 

Next, enter the fickle finger of fate-and, of course, paranoia 
and probably incompetence on the part of the local officials 
of MusselShell County, Montana. And this drama unfolds. 



335 



THE FRANKLIN COVER UP 



Seven individuals-some who did not even know or had 
never even met each other before, and comprised of individuals 
some of whom were members of the Montana Militia and 
others who were members of the Freemen- all ended up in 
Roundup at about the same time, but for different reasons. 

Defendant Dale Martin Jacobi of Thompson Falls, a busi- 
nessman who just sold his business and has the cash from the 
sale and other property-guns from his home since he is moving 
them; equipment from his business electrical/plbg/htng busi- 
ness-rides into Roundup in his 1 ton 83 Chevy right after 
using part of his business sale proceeds to buy some gold coins 
in Billings. 

Accompanying Jacobi was his friend and, because Jacobi 
was carrying his stash of loot from sale of his business, body- 
guard, Frank Eugene Ellena of Billings. 

Frank had borrowed a two way business network radio- 
completely legal, licensed, etc. -from another "Desperado" 
who ended up a member of the Montana Seven, namely, busi- 
nessman Amando Gerry Lopez of Rexford. Lopez, also a Free- 
man, used the equipment in his business and allowed Frank to 
have the radio because Frank wanted to have access to assis- 
tance because he and Jacobi were carrying the cash mentioned 
above. Frank also had to file some "Trust Papers" in the court- 
house in Roundup for some property Frank had bought in 
the county. 

Meanwhile, John Trochman, not a Freeman, but founder of 
the Montana Militia, had come to the area to meet with F.B.I. 
officials whom he works with, and to allay any concerns or 
disagreements or mis-understandings between representatives 
of the Freemen Group and the Montana Militia. 

Now comes Paul D. Stramer, Eureka, along with his friend, 
Cajun James, a disabled vet out of Eureka, whose gun-toting, 
buckskins-wearing, foot-long beard and super-long hair appear- 
ance would make the average person look and probably think 
twice about messing with him. But, until now, appearance is 
not a felony. 

Stramer wants to set up a statewide radio network for the 
Patriotic groups (Militia and/or Freemen) and is seeking finan- 



336 



FROM MONTANA TO OKLAHOMA CITY 

cial assistance from the arch-enemy of the local officials, 
namely a Mr. Leroy Switzer. And Cajun James, a legally li- 
censed gun salesman, has been given an order for purchase of 
weapons (single shot, I might add) from Mr. Switzer also. 

Mr. Switzer utilizes a CMO for his purchases (Certified 
Money Order) which he believes has value but which there 
seems to be considerable disagremeent on as to how much 
value it has in the overall financial community-but that is 
not an issue in the arrest ofthese individuals, merely an interest- 
ing sidebar. 

On Friday, March 3, 1995, the Fickle Finger of Fate caused 
Deputy Buzz Jones to arrest, rather violently and without sound 
reason, Mr. Jacobi and Mr. Ellena in Roundup and to search 
their vehicle. 

Deputy Jones found just what his con informant had told 
him he might find gold, hordes of cash, guns, radio equipment, 
and two individuals who belonged to the militant groups he, 
Deputy Jones hated. Deputy Jones apparently believed he was 
on the verge of stopping an invasion, kidnapping, murder and 
worse. And, under those circumstances, why not rough up the 
individuals you have arrested? Why not scream obscenities at 

them and threaten them and tell them that those f Freemen 

are not going to take over his town. And Deputy Jones did 
that . . . and a lot more. 

But, unknown to Deputy Jones, watching from a short dis- 
tance was one of the other Freemen who then contacted the 
other individuals named here and said they should check on 
what was going on. Besides, as Lopez, said, "They got my radio 
and I need it for my business and I can't afford another one. 
They cost $500.00 and I am going to go to the Sheriff and see 
if they will give it back to me." 

COMEDY TURNS TO 
SERIOUS TRAGEDY 

So, in two separate vehicles, the other individuals named 
drive over to the Sheriffs office to check on their friends and 
to ask for the return of Mr. Lopez's radio. 



337 



THE FRANKLIN COVER-UP 



The tale gets controversial and tragic here. A couple of the 
defendants go into the sheriffs office to seek return of the 
Lopez radio and the others wait in their car properly parked 
in front of the sheriff's office. None of the Montana Seven 
defendants does anything improper or illegal. All are polite. 

But, suddenly, with lightning speed and led by Deputy Jones, 
the officials assault these individuals. They believe, apparently 
driven by paranoia, they have a right to capture. Again, led 
by Deputy Jones, the Montana Seven are trussed up like hogs; 
handcuffed with their hands behind their backs; forced to lie 
for six hours in pain on concrete trussed up and handcuffed. 
They abuse them in a variety of other ways, threaten them 
with loaded shotguns in their backs and chests, break out car 
windows, question them in violation of all legal and proper 
police standards; charge them with felonies of every ilk and 
description and fabricate allegations to support their charges 
and their actions. The officials lie to the relatives and friends 
calling in to the sheriffs office and repeatedly deny that the 
Montana Seven are even at the jail or have been arrested. 

And these things recited here are the nicest things the local 
officials do. 



THEN SA NITY STARTS 
TO RETURN 

Believing they have captured the seven most dangerous men 
in America, the local sheriff and his cohorts bring in the Feds. 

The Feds figure out-we believe -that they are in the midst 
of a comedy of errors and misunderstandings and after question- 
ing the Montana Seven, quickly get out of any further involve- 
ment in the matters pending and return everything to local 
officials. We believe they, the Feds, are the ones who alerted 
the Attorney General of Montana of the need for some proper 
law enforcement involvement . . . but we do not know. 

Next, the Attorney General of Montana gets involved, a man 
named John Connor, and over the next few days sanity and 
proper law enforcement procedures begin to replace keystone 



338 



FROM MONTANA TO OKLAHOMA CITY 

kops and police brutality. Hundred Thousand Dollar Bonds are 
reduced to ten thousand dollar bond and communication is 
established between the attorney for the Montana Seven, my- 
self, and the A.G.'s office. 

Of course, before sanity begins returning, politicians (and I 
sure understand this) leap on the bandwagon and proclaim the 
evils of the terrorists and how the state must not be a victim 
of such terrorists; the media hypes the story-without benefit 
of accurate facts or any responsible investigative reporting 
and-the families and businesses of the Montana Seven are 
horribly damaged. And, the local law enforcement officials 
who prompted the comedy, "leak" one sordid and wild tale 
after another to the media as to what "really" occurred. 

It is time now, John, to tether ourselves to reality instead 
of to Rambo and resolve this case. And that is what I am 
offering to do with this letter. 

As a sample of how far reality and what was being perceived 
as reality were separated, let me provide you some of the 
evidence grabbed which was supposed to support a charge 
(remember the claims in the media being supported by "leaks" 
from Local Officials, particularly Deputy Jones) of counter- 
feiting. 

Attached is the $3.00 bill which was the basis for the claim. 

You might note, John, that if this is counterfeiting, then 
every novelty store, gift shop and curio shop in America is in 
the business of counterfeiting and marketing counterfeit money. 

Yet, John, this was probably the closest to reason of any of 
the charges against the individuals. 

As a final offer to get this settled and in the best interest of 
getting some accurate information to all Montanans, my clients 
would like to make the following offer: 

Each of my clients would undergo a polygraph test on any 
material question relating to these charges against them or the 
events and incidents surrounding this. They would want you 
to bring in the best polygraph expert(s) in the country. They 
would agree in advance that any results ofthe testingfor any and 
all ofthem, no matter whether it showed positive or negative for 
them, would be admissible in court, civil or criminal. 



119 



THE FRANKLIN COVER UP 



There would be only one condition: That is, they insist the 
two Deputies and local officials in Musselshell County also 
be subject to the same terms and conditions. That is, polygraph 
examination on the materialfacts surrounding the arrest, incar- 
ceration, filing of charges, police brutality, etc. 

Finally, for the benefit of all Montanans, they agree in ad- 
vance that any representatives of the press would be allowed 
to be present at the polygraph examination and submit any 
questions they might have about the events. 

Why all this? 

So much injury and damage has been done and so much 
disinformation has been put out that it is in the best interest 
of everybody, including particularly the Montana Seven, that 
the truth get out. And it is in the best interests of everybody, 
that Law Enforcement be held to the same standards of truth 
and responsibility they expect of the citizens. 

Again, I would repeat my offer as outlined in the beginning 
of this letter; and with these additional incentives I have just 
mentioned, polygraph, willingness to answer any questions for 
the press, it seems it would be beneficial for everyone to get 
these matters resolved, sanity restored and the situation de-esca- 
lated. 

Awaiting your reply I remain, 

Respectfully, 



John W. DeCamp, 

Attorney for the Montana Seven 

[All emphasis in original.] 



The official response of the Attorney General of Montana 
to my ultimatum, was to say that the state of Montana was 
proceeding with the trial on charges of criminal syndicalism 
(sedition). The Deputy Attorney General John Connor, a fine 
individual who had to do whatever the Governor and Attorney 
General told him to, informed the press that my ultimatum 
would be ignored. 



340 



FROM MONTANA TO OKLAHOMA CITY 

The Governor also stoked the rumor mills by, first, creating 
a strawman called "the Militia." He put forward the bogus 
story that the MOM had planned to assault the Sheriff's office 
and the courthouse in Roundup, and hang the judges. 

When the press told me what the Governor and the Attorney 
General were purporting, I replied, "This story is pure fantasy, 
an attempt by public officials to excuse their mistakes. I dare 
Montana and its officials to go to trial on these bogus charges, 
because Montana will lose, and its criminal syndicalism laws 
will be declared unconstitutional." 

Then, in March 1995, at the last minute before my deadline 
for dismissal of the charges, the Attorney General's office swept 
into Roundup, dismissed all the charges, and informed the press 
that Montana officials were not responding to my demands, 
but were dismissing the charges because the Attorney General 
"needed more evidence" to prove his case. 

My goal to free these men had been accomplished. For that 
1 felt proud and satisfied. The case received much national 
attention-especially with law enforcement at both the state 
and the federal level, and I became somewhat of a legend 
among the patriot and militia movement. 

At the height of the "Montana Seven" case, as it came 
to be known, I had been dealing directly with the Montana 
Governor's office, the Attorney General's office and officials 
in Washington, as well as with the national press, trying to 
prevent an outbreak of violence spawned by either the militias 
or by the government. 

During February, and particularly in March and early April 
of 1995, rumors were flying through the entire Militia and 
Patriot community on almost an hourly basis, warning of immi- 
nent raids by federal officials against militia compounds. Na- 
tionwide, militias were circulating reports in all their fax, press 
and phone networks, that these raids were coming, and that 
the militia members had better be prepared. 

The militias specified in their written and oral communica- 
tions, the date of April 19, 1995, as the date of the impend- 
ing onslaught. 

Militia members had become convinced that a Federal Strike 



341 



THE FRANKLIN COVER UP 



Team composed of ATF and FBI. CIA and U.S. military was 
about to launch airborne and ground strikes against various 
militia headquarters, particularly against the Militia of Montana 
at Noxon, Montana. Militias across the country prepared to 
defend themselves against these attacks. All this intense activ- 
ity-unknown by most Americans then, or now-was occur- 
ring in the first half of April 1995. 

During that same period, I and others, such as former presi- 
dential candidate Bo Gritz, for example, spent hours each day 
trying to determine whether any such strikes were actually 
planned, or were just wild rumors. Federal officials advised us 
that no attacks were planned, information we relayed to militia 
leaders both in person and through talk shows on the patriot 
networks, working nonstop to defuse the extremely volatile sit- 
uation. 

This was the environment in the militia world, on the eve 
of April 19, 1995. Given my role in the midst of this, it was 
inevitable that the Feds showed up on my doorstep right after 
bombing. 



342 



CHAPTER 23 

THE OKLAHOMA 
BOMBING-THE 
REAL STORY 



Since the bomb-or bombs-ripped through the Oklahoma 
City Federal Building on April 19, 1995, I have received 
through fluke or fate, a huge amount of information about the 
bombing. Based on this, I will give here my best assessment 
of what actually happened-what Americans in future years 
will understand about the events in Oklahoma City. 

As noted, my first involvement came when the F.E.I, sought 
my assistance, because of my successful representation of vari- 
ous militia groups across the United States. 

Then, certain bombing victims asked me to file civil litigation 
against whomever caused their injuries. Some of these victims 
were in hospitals at the time, severely injured, and able to 
speak only through writing notes to others to deliver to me. 

I immediately put together an investigative team to look at 
the event and to try to determine what had actually occurred. 
The head of that team was Ted Gunderson, the former Special 
Agent in Charge (SAC) of the FBI's Los Angeles field office, 
who had had 800 agents working under him, and with whom 
I had collaborated in the Franklin case. Ted and his team 
arrived in Oklahoma before the dust had even settled from 
the explosion. 

Much later, after this initial work was completed, I became 
the attorney for a man named Hoppi Heidelberg, who was one 
of the federal grand jurors who had helped to indict Timothy 
McVeigh and Terry Nichols for the Oklahoma City bombing. 
Hoppi came to me because he believed the government planned 
to indict him for his work on the grand jury. It seems that 



343 



THE FRANKLIN COVER UP 



Heidelberg had read his instructions on his responsibility and 
authority as a member of a federal grand jury, and was deter- 
mined to do his job. Hoppi Heidelberg is a true patriot. 

Hoppi had come to the conclusion that the government was 
covering up facts, was refusing to deal properly with the grand 
jury, and was trying to narrow the case to Mr. McVeigh and 
Mr. Nichols. Hoppi has said on talk shows nationwide, that he 
believes that there is a "John Doe 2 "-and probably 3 and 4- 
and that the government is refusing to share that information 
with the American people. Hoppi was in fact removed from 
the grand jury-after the indictments of MeVeigh and Nichols. 

I emphasize at this point that nothing 1 say here violates, in 
my opinion, any information I learned from grand juror Hoppi 
Heidelberg, either from the standpoint of violating federal grand 
jury laws or violating attorney client relationships. All informa- 
tion disclosed here, was obtained by me from my own separate 
investigations. 

With respect to my own investigation of the bombing on 
behalf of injured victims, the following events raised serious 
questions in my mind in regards to the case: 

1. Our investigation revealed that the so-called fertilizer 
bomb could not, by itself, have caused the destruction of the 
Federal Building, and in the manner described. Today, there 
are many theories, including the "Hydro-Dynamic" theory of 
a "hydrodynamic" super-bomb, which is highly classified, and 
which would have been used in conjunction with the basic 
fertilizer bomb. There are also the theories of General Partin, 
a well-known retired army general, of bombs of different types, 
including the possibility that bombs were placed inside at key 
points in the building to destroy its supports. 

Our investigation shows that the fertilizer bomb-as it has 
been described by government officials as the single source 
of the explosive-is not accurate. Highly qualified military 
personnel have observed, that if the explosion were to have 
been the result of only the fertilizer bomb, then a degree of 
expertise would have been required for its construction and 
placement, far beyond the capabilities of either McVeigh or 
Nichols. Such a fertilizer bomb would have to be a precisely 



344 



THE .OKLAHOMA BOMBING-THE REAL STORY 

constructed "shape charge," all of whose force would have to 
be directed at the building's supports, and at precisely the 
right angle. 

2. In the investigation, I retained the most respected (and 
expensive) bomb experts in the world, John A. Kennedy and 
Associates, Inc., out of Hoffman Estates, Illinois. They had 
investigated the World Trade Center bombing, and are recog- 
nized as one of the world's best, if not the best, in the field. 

3. I prepared documents to go to court to force the govern- 
ment to keep the Federal Building standing long enough for 
experts to examine the building, the soil, and environs, to 
establish what caused the destruction, in particular what type 
of explosive was used. 

4. Only hours before I was to file the legal papers for a 
civil action to keep the building standing, I was contacted by 
Timothy McVeigh's attorneys, who presented me with two 
major requests. 

First, they asked that I allow them to file the motions to 
keep the building standing so that the investigation could be 
conducted. They had cogent legal arguments for this request: 
because McVeigh was/is under federal criminal charges, he 
had the definite legal right to keep the building standing under 
federal rules of evidence which grant criminal defendants the 
right to preserve evidence that would significantly impact their 
defense. It was clear that if McVeigh's attorneys believed, or 
even suspected government cover-up, they would definitely 
want the building examined. 

Their second request was that I release from retainer the 
bomb investigation team I had assembled-John A. Kennedy 
and Associates-which, they claimed, they wanted to hire. 

I granted these requests to Mcveigh's attorneys. 

A few hours later, I watched in horror as CNN and all the 
national news channels reported that McVeigh's attorneys had 
no intent to file any motions to keep the Federal Building 
standing. They had "just reached agreement with the govern- 
ment," the reporters explained, to permit the building to be 
destroyed almost immediately. 

Angry beyond belief, I called McVeigh's attorney and asked 



345 



THE FRANKLIN COVER-UP 



what they were doing. Since this all occurred on a weekend, 
I could take no legal action to stop the building's destruction. 
Mcveigh's attorney told me, "Oh yes, we are going to allow 
the building to be destroyed." I demanded. "Because 

we could not afford to pay the retainer fee that the Kennedy 
and Associates firm wanted," he answered. 

Shocked by this feeble explanation, I asked, "Well, just 

how much do they want?" Mcveigh's attorney floored me: 

he said. we have no resources to pay it, 

because we are a court-appointed attorney and there are no 

funds for this purpose." 

"For God's sake!" I screamed at him. "I will raise the money! 
I will pay the fee! There is too much at stake for America. 
I demanded, "can McVeigh go along with wanting that 
building destroyed, when that building is the one thing that 
can tell America the story of what really happened? I will get 
you the money, somehow, but don't refuse to keep the building 
up for that reason!" 

My protests were futile. Within hours of my call, by mutual 
agreement between McVeigh's the government 

prosecutors, the was destroyed, and any 

destroyed with it. 



What really did happen in City? Without 

any federal laws, the is my best estimate on what 

transpired and how, based upon countless meetings with wit- 
nesses, victims, experts, and information gathered by my own 
investigative team led by Ted Gunderson. The "why" of all of 
this, is what I do not know in detail- at least not yet. 

The United States government-probably as it should 
have-was investigating a group of individuals, in particular 
Timothy McVeigh, who were inclined to want to "get even" 
with the government for what they perceived to be its excesses 
and violations of the Constitution. The government infiltrated 
the McVeigh group, a standard operating procedure in such 
investigations. 



34 



THE OKLAHOMA BOMBING-THE REAL STORY • 

Unfortunately, the government, was using low-quality, unre- 
liable informants and infiltrators who were themselves more 
dangerous than either McVeigh or Nichols. 

The government supervisors actively provided government 
resources and assistance-through their informants and infil- 
trators-to McVeigh and Nichols. They may have even pro- 
vided certain chemicals and materiel. Most importantly, the 
government supervisors were aware of the planning of the 
bomb, the personalities involved, and the resources available. 

There was a John Doe I and a John Doe 2 and probably 
several other John Does -but they were the government infil- 
trators the government dare not admit existed, lest the American 
public find out just how deeply involved the government was. 

There is still the open question of terrorism against the 
United States by a foreign power-but this would involve 
complicity with at least certain U.S. agencies or personnel. 

It is certain that the government knew from the beginning, 
that there were no organized militias or militia conspiracy 
involved in the bombing as such. Yet, government spokesmen 
in a coordinated fashion fostered the idea that the militias were 
involved, and that the militias were the most dangerous animal 
facing all Americans. For months after the Oklahoma bombing, 
witch hunts against the militias were carried out under the 
government cover of "national security"-the same cover used 
and abused far too often in the last two decades of American 
history, including in the Iran/Contra trial. 

The government's legitimate concern with national security 
has been turned into a banner under which government officials 
and judges and agencies and politicians can, and do get away 
with almost anything and everything. They cover their mistakes. 
They cover their expenditures. They cover their sins. And they 
are covering up the true story of the Oklahoma bombing, not 
necessarily because they intend to be evil (I hope), but most 
likely because they cannot admit how their own negligence 
contributed to it. 

At least, that is what I believe at this point. 



347 



CHAPTER 24 



THE U. S. JUS TIC E 
DEPARTMENT 
MURDER OF 
GORDON KAHL 



Because I had successfully represented various clients in, or 
around, the "militias," I was contacted in mid-1995 by Yorie 
Kahl, the son of farmer-activist Gordon Kahl. On June 3, 1983, 
Gordon was assassinated by agencies of the U.S. government. 
The following "statement of facts" of the Kahl case, father and 
son, was filed by me before the U.S. District Court in North 
Dakota on April 16, 1996. It is based, in part, on the never- 
before released affidavit which Gordon Kahl prepared about 
the infamous shoot-out in Medina, North Dakota, on Feb. 13, 
1983, in which Yorie Kahl was gravely wounded, and which 
set into motion the train of events that led to Gordon Kahl's 
own murder four months later. Gordon Kahl prepared the affi- 
davit with the conviction that federal law enforcement would 
kill him, rather than capture him alive, if they ever found him- 
which is exactly what happened. 

Yorie Kahl released the following affidavit to me in prepara- 
tion for his trial. I believe it is the most complete account ever 
of this chilling story. 



348 



JUSTICE DEPT. MURDER OF GORDON KAHL 

UNITED STATES DISTRICT COURT FOR THE 
DISTRICT OF NORTH DAKOTA 



UNITED STATES OF 


STATEMENT OF FACTS TO 


AMERICA, 


SUPPLEMENT MOTION 


vs. 


UNDER 28 U.S.c. § 2255 TO 


YORIE VON KAHL, 


VACATE, SET ASIDE, OR 


Movant, 


CORRECT SENTENCE 



The Petitioner Yorie Kahl has filed a motion with this court 
under 28 U.S.c. §2255 to vacate, set aside, or correct sentence. 
Petitioner Kahl alleges that he is in custody in violation of 
the Constitution of the United States. The Petitioner suffered 
through a trial involving prosecutorial misconduct and a biased 
judge. But for the denial of his right to due process, Yorie 
Kahl would never have been convicted of any crime. This 
Statement of Facts has been prepared for the benefit of the 
judiciary who will be reviewing this case for the first time. 

I. INTRODUCTION 

The case before this Court is complex. It involves a chain 
of events and a compounding of errors that occurred over a 
time frame of several years. On February 13, 1983, Yorie Kahl 
was in a group who were involved in a shooting incident with 
United States Marshals and others in Medina, North Dakota. 
Four United States Marshals and two local Law Enforcement 
Officers attempted to serve an arrest warrant on Gordon Kahl 
for an alleged violation of misdemeanor probation. A gun battle 
erupted and two U.S. Marshals were killed. Three other law 
enforcement officers were injured as well as the Petitioner, 
Yorie Kahl. As a direct result of the "shoot out", Petitioner 
Yorie Kahl was charged with and convicted of second degree 
murder, assaulting federal officers, harboring a fugitive and 
conspiracy. 

Before this case can be understood it is critical that events 
leading up to the confrontation be examined and understood. 
The Kahl Saga, involving both Father Gordon and Son, Yorie, 
consists of four significant episodes. These are: (1) Preliminary 



349 



THE FRANKLIN COVER-UP 



causes, 1976-1982; (2) The "Shoot-out" event at Medina, North 
Dakota on February 13, 1983; (3) The trial in which Petitioner 
Yorie Kahl was convicted, February 14 through June 24, 1983; 
and (4) The death of Gordon Kahl in Arkansas, June 3, 1983. 

II. EVENTS LEADING UP TO MEDINA 

Yorie Von Kahl, the Petitioner, is the son of the late Gordon 
Kahl. Gordon Kahl was a farmer and decorated veteran of 
World War II. Gordon Kahl held strong religious and political 
convictions. Gordon Kahl came to the conclusion in the 1970' s 
that America was headed politically and morally in the wrong 
direction. This distressed Gordon Kahl. Despite his personal 
lack of resources, he felt he had an obligation to share his 
beliefs and views with anyone who would listen. Towards this 
end, Gordon Kahl regularly spoke out publicly, criticizing the 
Government and particularly the federal income tax system. 
Often Gordon Kahl used the media and public gatherings to 
spread his message. 

A. POLITICAL ACTIVISM 

Gordon Kahl was particularly outspoken and a strong critic 
of what he perceived to be the perversion of politics, law and 
Justice that Kahl believed was occurring in America. So prolific 
were Gordon Kahl's written and verbal attacks on what he 
sincerely believed to be unconstitutional applications of laws 
(Income Tax, Federal Reserve System), that he eventually be- 
came a well-known political dissident among those who gener- 
ally shared his concerns. Among what today is known as the 
"Patriot Community," Gordon Kahl might properly be termed 
an American "Refusenik." 

In the mid-1970's, Gordon Kahl, along with other "Refuse- 
niks," appeared on local television in Texas to share their beliefs 
with other Americans. The primary target of their criticism 
was the foundational basis of the American Income Tax system 
and its application. Gordon Kahl publicly advocated and en- 
couraged non-compliance, with the claim that the non- compli- 
ance could be done with impunity. Such public disdain for the 
Tax System helped fan the flames of "non compliance" as far 



350 



JUSTICE DEPT. MURDER OF GORDON KAHL 



as the IRS was concerned. For a tax system built on the very 
theory of voluntary compliance and self assessment, individuals 
such as Gordon Kahl posed a threat to the superstructure of 
the income tax system. 

B. PROSECUTION 

To stem the feared spreading noncompliance with the tax 
system, the IRS in 1977 targeted Gordon Kahl officially as the 
leader of the "tax rebellion." The IRS initiated what it deemed 
to be reasonable and necessary measures to shut down the 
developing tax rebellion. To do this, the Government initiated 
a very public Prosecution of Gordon Kahl under IRS rules and 
laws which penalize NON-COMPLIANCE OR FAILURE TO 
FILE AN INCOME TAX RETURN. A co-leader in the tax 
rebellion with Gordon Kahl, Mr. W. M. Rinehart, was also 
prosecuted, convicted and subsequently died in prison. Both 
Kahl and Rinehart were prosecuted for and convicted of misde- 
meanors for failure to file a tax return. Yorie Von Kahl was a 
teenager living at home at the time of his father's prosecution. 

Gordon Kahl was tried and convicted in 1978 in the United 
States District Court for the Western Division of Texas, on 
two misdemeanor counts of willful failure to file federal income 
tax returns. Specifically, Gordon Kahl was prosecuted under 
26 U.S.c. §7203, a misdemeanor carrying a maximum sentence 
of up to one year imprisonment and/or maximum fine of 
10,000 dollars. 

IT IS MOST IMPORTANT TO NOTE, however, that at 
the time of sentencing, Gordon Kahl was sentenced to one year 
imprisonment on Count I under the felony provision of 18 
U.S.c. 4205(a). Additionally, Gordon Kahl's sentence on the 
second misdemeanor conviction was also a felony sentence. 
Specifically, Gordon Kahl was sentenced to ... probation for 
five years ..." on Count II. This felony sentence itself violated 
18 U.S.c. §3651. Section §3651 provides that the probation 
period can not exceed the maximum incarceration penalty al- 
lowable. In this case the maximum incarceration sentence al- 
lowed was one year. Statutorily the maximum probation that 



351 



THE FRANKLIN COVER-UP 



the court should or could have imposed even under the felony 
provisions of 18 U.S.C §3651, was one year. 

The judicial abuse of Gordon Kahl, whether through accident 
or artifice-did not end with the sentencing errors. The special 
conditions of Kahl's parole were blatantly unconstitutional. 
Parole Condition One required not that Kahl divorce himself 
from illegal activity or groups participating in illegal activity, 
but rather from groups ADVOCATING the expression of free 
speech, all in contravention of the First Amendment to the U.S. 
Constitution. Condition two required that Kahl furnish copies 
of his tax return every year to his probation officer. This was 
a direct and clear contravention of the Revenue Laws of the 
United States. 

After conviction and sentencing, Gordon Kahl was immedi- 
ately sent to the Medical Center for Federal Prisoners in Spring- 
field, Missouri for psychiatric evaluation. There Gordon Kahl 
was found competent to engage in further proceedings. He was 
then released on bond pending appeal. 

C. PRISON 

In January of 1979, having exhausted his appeal rights, 
Gordon Kahl entered the Leavenworth Prison camp in Leaven- 
worth, Kansas. Mr. Kahl was credited for time served at Spring- 
field although he was given no credit towards probation for 
his exemplary behavior while awaiting appeal. No attempt by 
IRS was ever made to collect any alleged back taxes from Mr. 
Kahl until 1982, some four years later. 

When Gordon Kahl arrived at Leavenworth prison, his Fed- 
erally Appointed Case Worker advised Mr. Kahl that his sen- 
tence was illegal and that he was improperly sent to prison by 
the Sentencing Court. When the same case worker reported 
this fact to her supervisors, the Case Worker was instructed 
that if "she wanted to keep her job to keep her mouth shut." 
Shortly after that, Gordon Kahl was offered release in exchange 
for extremely onerous of probation. Gordon Kahl refused, 

preferring to serve his time and be free when released. 



352 



JUSTICE DEPT. MURDER OF GORDON KAHL 



D. PROBAnON 

In August 1979, Gordon Kahl was released from Leaven- 
worth Prison Camp. While being processed out of the camp 
he refused to sign the probation papers. After going home to 
the farm in North Dakota, Kahl's probation officer went out 
to the farm to see Kahl. Gordon Kahl told the probation officer 
that if it would make the probation officer happy Kahl would 
sign the papers. That was the only visit the Probation Officer 
made to Gordon Kahl's house. Subsequently, for a few months, 
the Probation Officer left the Probation Report papers in the 
Kahl mailbox. Then, the Probation Officer even quit doing that. 

For a substantial time following Gordon Kahl's release from 
prison, Gordon Kahl maintained a low profile and specifically 
declined invitations to attend and speak at public meetings. 
Consistent with the character of a dissident though, Gordon 
Kahl eventually renewed his denunciation and criticism of what 
he believed to be Unconstitutional Government actions and 
Judicial Corruption. Gordon Kahl was particularly outspoken 
about what he perceived to be the perfidy of the State and 
Federal judiciary in North Dakota and their links to Masonic 
organizations. Specifically, Kahl targeted Federal District 
Judges Paul Benson and Bruce VanSickle for his strongest 
criticism. They, consequently, took Kahl's vitriolic criticism 
as a personal affront, but, even more important, an affront to 
their judicial authority and the prestige of the position of federal 
judicial officers. 

E. SUMMONS 

On June 27, 1980, the U.S. District Court for the Western 
Division of Texas issued a summons for Gordon Kahl to appear 
before the Court to show cause why his probation should not 
be revoked. August 6, 1980, twelve months after Kahl's release 
from Leavenworth Prison Camp, Gordon Kahl was allegedly 
served the summons. It was further alleged that Gordon Kahl 
had advised the Deputy U.S. Marshal who had served the 
summons, that Kahl did not believe he was on probation and 



353 



THE FRANKLIN COVER UP 



that consequently he had no intention of appearing at any show 
cause hearing. 

According to uncontroverted testimony at trial by Joan Kahl, 
the widow of Gordon Kahl, the signature on the summons was 
not that of Gordon Kahl. The sole reason given on the motion 
for revocation of probation was "On or about May 20, 1980, 
the probationer has not abided by his Special Conditions of 
Probation that he be required to furnish the probation office 
with a copy of his income tax return each year at the appropriate 
time for filing a return." 

On September 23, 1980, a month after any legal probation 
period would have expired, the U.S. Attorney was given leave 
of the U.S. District Court of Texas to withdraw the motion to 
revoke the Defendant's probation. This was granted by order 
of the Court. It is believed that the reason for the withdrawal 
of the motion was that the condition of probation was illegal. 
It is also believed that fact was known to the Federal JUdiciary 
as well as the consequential fact that the order could not lawfully 
be enforced. 

F. THE WARRANT 

Six months later on March 30, 1981, the U.S. District Court 
for the Western Division of Texas issued a warrant for the 
arrest of Gordon Kahl. The supporting grounds on the petition 
requesting the warrant this time were, "It is alleged that proba- 
tioner is in violation of Condition No. V -YOU SHALL RE- 
PORT TO THE PROBATION OFFICER AS DIRECTED." 
(Emphasis in original). 

According to a United States Marshals' Service Field Report, 
the Texas judge who had issued the warrant wanted Gordon 
Kahl returned to Texas. The report also stated "the JUDGE 
HAS SET THE BOND ON KAHL AT $1,000,000 CASH OR 
$75,000 + 10% CORPORATE SURETY." (Emphasis in 
original.) 

All this for an "alleged" misdemeanor probation violation. 
A probation which was itself null and void and violative of 
Federal Law. Remember, no new motion had ever been entered 
to revoke Gordon Kahl' s probation. And, of course, the original 



354 



JU.STICE DEPT. MURDER OF GORDON KAHL •_ 

probation imposed upon Gordon Kahl was illegal and therefore 
Any legal probation would have necessarily expired at 
the latest on August 19, 1980. Therefore, for anyone of at 
least three reasons, the action by Federal Marshals, led by 
United States Marshal for North Dakota, Ken Muir, on Feb. 
13, 1983 resulting in the "Shoot-out", was knowingly initiated 
under a faulty warrant at best. 

The three reasons, summarized again, are: 1) Illegal 5-year 
FELONY probation sentence given for a Misdemeanor, thereby 
rendering the probation itself illegal; (2) Any legal maximum 
probation period allowed would necessarily have expired on 
Sept. 23, 1980, more than 2 years before the Shoot-out" at 
Medina; (3) The supporting grounds for issuing the "Alleged" 
warrant under which U.S. Marshal Muir was operating on 13 
Feb. 1983, were themselves defective legal grounds. Why? 
Because the Probation conditions imposed ordered Gordon 
Kahl to perform acts which the courts are constitutionally for- 
bidden to order; namely, (I) First Amendment violation by 
prohibiting Gordon Kahl from "Associating" with groups "ad- 
vocating willful disobedience " (2) Requiring Gordon Kahl 

to furnish copies of Kahl's future tax returns to the probation 
office, in violation of Federal Revenue Laws. 

G. UNITED STATES MARSHAL, HAROLD "BUD" 
WARREN 

Harold "Bud" Warren was the United States Marshal for 
North Dakota on March 30th, 1981, when the so called "Misde- 
meanor Arrest Warrant" for "Probation Violation" arrived at 
the U.S. Marshal's Office in Fargo, North Dakota. Warren 
immediately reacted by personally traveling to Carrington, 
North Dakota where Warren was advised Gordon Kahl might 
be located. Based on information from federal officials he had 
dealt with, Warren went there expecting to find a fugitive in 
hiding. What Warren by his own admission found was a 
friendly, smiling farmer leaning against the front of a church. 
Gordon Kahl had attended church and was waiting for Joan 
Kahl, his wife, to join him. 

A few days later, Marshal Warren made arrangements to 



355 



THE FRANKLIN COVER-UP 



meet personally with Gordon Kahl. He wanted to discuss the 
"Misdemeanor Warrant" and resolve the situation. Warren went 
unarmed, as was Gordon Kahl. Warren advised Gordon Kahl 
of the existence of the warrant and gave Gordon Kahl thirty 
days to try and straighten out the situation with the warrant. 
Marshal Warren told Mr. Kahl, after thirty days he, Warren, 
would have to take action to arrest him, Kahl. 

During the 30 day moratorium Marshal Warren had given 
to Gordon Kahl to clear up the misdemeanor Warrant, Warren 
himself was removed from office. Warren's removal from office 
was itself a highly charged political maneuver. Deputy U.S. 
Marshal, Ken Muir, was quickly installed as United States 
Marshal for North Dakota. 

Marshal Warren himself had incurred the wrath and animos- 
ity of the political king-makers in North Dakota politics by 
1981. His decision to accommodate Gordon Kahl and attempt 
to amicably resolve the issue of the Arrest Warrant was not 
well received. Gordon Kahl's very presence in North Dakota 
had become a significant embarrassment and irritant to the 
political system and economic power structure. Gordon Kahl 
was loud and outspoken in his criticism of the political power 
structure. He blamed the same political and economic power 
structure for an almost total collapse of the agricultural econ- 
omy in North Dakota which was occurring in the early 1980's 
as part of the so called "Farm Crisis." 

H. A NEW U.S. MARSHAL FOR NORTH DAKOTA 

In 1981 Ronald Reagan replaced Jimmy Carter in the White 
House. The change in presidential administrations afforded the 
North Dakota power brokers and politicians the opportunity to 
appoint a U.S. Marshal who promised to rid the system of the 
irritating Gordon Kahl. In the person of U.S. Deputy Marshal 
Ken Muir, was the culmination of all their desires. At the 
request and behest of Judges Benson and VanSickle, Senator 
Mark Andrews of North Dakota was induced to recommend 
to President Reagan that Deputy Marshal Ken Muir be given 
the appointment as U.S. Marshal for North Dakota and that 
U.S. Marshal "Bud" Warren be removed from his position as 



356 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

U.S. Marshal. As is the custom, President Ronald Reagan then 
nominated Deputy U.S. Marshal, Ken Muir, for the position 
of U.S. Marshal for North Dakota and the U.S. Senate routinely 
approved the nomination. 

With the transfer of office from Warren to Muir, new U.S. 
Marshal Ken Muir specifically refused former Marshal War- 
ren's offer of information and guidance and assistance in resolv- 
ing the Gordon Kahl affair. Ken Muir specifically told out- 
going Marshal Warren "When you were Marshal you did it 
your way, (handling Kahl) now we do it my way." 

After failed attempts by Marshal Muir to apprehend Gordon 
Kahl-keystone cop type attempts which Kahl himself appar- 
ently was never even aware of-now Deputy U.S. Marshal 
Warren again contacted U.S. Marshal Muir. Deputy Marshal 
Warren offered to give Marshal Muir what information Warren 
had learned about Gordon Kahl. Muir responded to Warren's 
contact and offer by advising Warren that, "No need existed 
any more for assistance from Warren or concern about Gordon 
Kahl because Muir had been advised by U.S. Marshals' Service 
Deputy Director Toomey in Washington D.C., '... to file the 
Gordon Kahl warrant away and not spend anymore time or 
manpower on it.' " That was in 1981. 

I. LIVING IN THE OPEN 

In 1982 the dissident Gordon Kahl freely roamed the country. 
He attended political meetings and personally, publicly and 
openly addressed these gatherings giving his strong opinions 
on constitutional issues such as gun control, income taxes, 
abortion, land use planning and Kahl's belief about excessive 
Masonic influence. Contrary to claims made by the Federal 
Government Gordon Kahl went about his business in the light 
of day. 

In the summer of 1982 Gordon Kahl's wife, Joan, and a 
neighbor friend named Herman Widiker went to the IRS office 
in Fargo, North Dakota, and offered to pay Gordon's Kahl's 
tax bill. The IRS told Joan Kahl and Herman Widiker that the 
IRS couldn't tell Mrs. Kahl and Mr. Widiker how much Gordon 
Kahl owed because the IRS didn't know. Gordon Kahl at- 



357 



THE FRANKLIN COVER UP 



tempted to file a Temporary Restraining Order in the Bismarck 
Federal District Court to halt the sale of his farmland by the 
IRS. The Clerk of the Federal District Court actually accepted 
the restraining order documents, but, unknown to Kahl, actually 
refused to file Gordon Kahl' s petition and complaint for a 
temporary restraining order. This refusal to file was unknown 
to Gordon Kahl. Instead of advising Kahl of the refusal, the 
court clerk personally turned Kahl's paperwork over to U.S. 
District Court Judge Bruce Van Sickle and notified the U.S. 
Marshals Service. 

Judge Van Sickle was then personally contacted by Deputy 
U.S. Marshal Bob Cheshire, who would later be killed at the 
shoot-out February 13, 1983 at Medina, North Dakota. Deputy 
Marshal Cheshire advised Judge Van Sickle in the fall of 1982, 
many months before the 1983 shoot out, that Gordon Kahl was 
a fugitive and the Marshal apparently suggested therefore that 
the Clerk should not file the motion. One thing is for sure: 
That is, Gordon Kahl sure did not know he was a fugitive 
in 1982. 

For whatever reasons, apparently based on instructions from 
U.S. District Judge Van Sickle, Gordon Kahl's complaint and 
petition for temporary restraining order were never filed. This 
was never known to Gordon Kahl nor was he ever informed 
of this refusal action. In November of 1982 the IRS attempted 
to sell Gordon Kahl's farm. That effort failed when no one 
would bid on the farm, so the IRS bought the farm itself. 

Of particular interest during the early 1980's, was the prob- 
lem farmers had remaining solvent. So did the banks that were 
financing them. Record numbers of farms and farmers were in 
foreclosure. In such an environment of despair and economic 
upheaval, many farmers saw themselves as victims of apolitical 
and economic system gone berserk. 

Seeing themselves as twentieth century patriots, many farm- 
ers proposed the return to their perception of what constitution- 
ally mandated government should be as the essential immediate 
and long term solution to the farm problem. Harkening back 
to their patriot heritage and the "spirit of 1776" these citizens 
openly exercised their right to keep and bear arms, to assemble 



358 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

and speak out against the government. The typical farmer/ 
patriot was also a hunter. But, bottom-line, they were simply 
citizens concerned about losing their farms and their per- 
sonal safety. 

J. ALL POINTS BULLETIN 

During the week of February 6, 1983, an All Points Bulletin 
(APB) was disseminated by Law Enforcement Officials in 
North Dakota through their state law enforcement communica- 
tions network, State Radio. The APB's contents were factually 
inaccurate. The APB originated from a confidential source in 
Carrington, North Dakota. It described Gordon Kahl and an- 
other man as carrying machine guns and driving to Fessenden, 
North Dakota to kill the Sheriff. The car Kahl was allegedly 
driving was in the possession of some one else that day. Need- 
less to say Kahl and his friend did not show up to shoot 
the sheriff. 

It now appears that the real purpose of the APB was not 
informational but was designed to provoke or create a violent 
confrontation between Gordon Kahl and Law Enforcement. By 
eliminating Gordon Kahl it was hoped to quash the emerging 
tax rebellion. This picture only emerges looking backwards 
with new factual data and documentation available now and 
not available in the heat of the 1983 Medina shoot-out and the 
emotionally and politically charged trials that followed. 

m. EVENTS AT MEDINA, NORTH DAKOTA, 
FEBRUARY 13, 1983 

On Sunday morning, February 13, 1983, Gordon Kahl, his 
wife Joan and son Yorie traveled from their farm near Heaton, 
North Dakota, to Medina to attend a meeting of dissidents, tax 
protesters and financially troubled farmers. They took their 
friend Scott Faul with them. Scott Faul suggested that Yorie 
Kahl bring Yorie's rifle in case they saw some rabbits. Yorie 
Kahl ran back in the house and retrieved Ruger Mini- 14. 
Gordon, Joan and Yorie Kahl and Scott Faul then left for 
Medina. Along the way they shot a rabbit to feed to the dog. 



359 



THE FRANKLIN COVER UP 



A. POLICE SURVEILLANCE 

Early that afternoon of Feb. 13, 1983, Bradley Kapp, the 
Deputy Sheriff of Stutzman County, North Dakota, contacted 
State Radio (law enforcement network). Deputy Kapp told the 
law enforcement radio network that the rumored meeting of 
the tax protesters/dissidents was underway in Medina, North 
Dakota at the Medina Medical Clinic and that Gordon Kahl 
himself was physically present at the meeting. State Radio 
immediately relayed the message to the U.S. Marshals' Service 
for North Dakota. The Marshals' service immediately contacted 
U.S. Marshal Ken Muir at his home and advised him of the 
meeting and Kahl's presence. U.S. Marshal Muir and Deputy 
U.S. Marshal Carl Wigglesworth immediately left Fargo headed 
for Medina. At Medina, Muir and Wigglesworth met up with 
Deputy U.S. Marshals Cheshire and Hopson who had come 
from Bismarck, North Dakota. At Medina Muir, Wigglesworth, 
Cheshire and Hopson enlisted the help of another local law 
enforcement officer, Medina City Policeman, Steven Schnabel. 

Under the pretense of executing the very warrant that Mar- 
shal Muir had specifically been instructed from higher authori- 
ties to ignore and not waste further resources attempting to 
serve, the Marshals set up a roadblock in the town of Medina at 
the railroad crossing. Darrell Graf, the Police Chief of Medina, 
became aware of the Marshals' plans and demanded that the 
roadblock be moved out of town. Unable to convince the Mar- 
shals to abandon their ill conceived plan, Chief Graf persuaded 
Marshal Muir & the others with him to move their road-block 
out of town into the countryside north of Medina. 

While all of these preparations were being made, the meeting 
was winding up at the Medina Medical Clinic. As the meeting 
goers were walking out they noticed someone watching the 
clinic. Dr. Martin, the operator of the clinic said, "That's just 
Brad Kapp (Stutzman Co. Deputy Sheriff) being Brad. He does 
stuff like that." David Broer decided to call Darrell Graf, the 
Medina Police Chief about it. Chief Graf told David Broer about 
the APB that had been issued a few days before, previously 
described above. 



360 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

The car in the APB matched Scott Faul's. This troubled 
Scott Faul because the day the APB was supposedly generated, 
his wife Shauna had driven the car to Harvey to do laundry. 
None of the Kahl or Faul groups present could think of any 
valid reason for the issuance of a legitimate warrant, especially 
involving Scott's car. Someone said to Gordon, Joan and Yorie 
Kahl, "It looks like you're being set up." This disturbed Joan 
Kahl, but Gordon Kahl reassured her that nothing was going 
on that he knew of. 

Not knowing what to think about the APB, and the anony- 
mous comment about a setup, Yorie Kahl suggested and then 
insisted that Yorie Kahl and his Father Gordon Kahl, trade 
coats and hats. Yorie Kahl and Joan Kahl accompanied by 
Vern Wegner and Scott Faul, got in Gordon Kahl's Chrysler 
station wagon. Gordon Kahl and David Broer got in David 
Broer's car so they could talk on the way to Gordon Kahl's 
home. The two vehicles left the Medina Clinic and headed 
north for the Kahl home. They were totally unaware of the 
presence of the Marshals or the ambush the Marshals had 
planned for them. 

B. PUBLIC SAFETY 

Based on discussion and information between himself and 
the Marshals that afternoon of Feb. 13, 1983, Chief Graf was 
convinced that the Marshals planned a violent ambush and 
confrontation. He was certain of the upcoming violence planned 
by the Marshals. So certain was GRAF of the impending danger 
and a certain shoot out or execution of the Dissident Kahl and 
Kahl's party by the Marshals, that he, GRAF, took extraordi- 
nary measures to minimize the damage to the town of Medina 
and its citizens. Chief Graf called out the Medina rescue unit 
just before 5:00 p.m., a full hour before the planned shoot out. 
Graf then prepared to set up road-blocks of his own to keep 
citizens out of the Marshals' planned ambush and fire zone. 

After observing the two Kahl vehicles and Marshal Chesh- 
ire's Ramcharger depart North out of town GRAF stopped 
citizens Mark and Carol Lanenga. The Lanengas were about 



361 



THE FRANKLIN COVER-UP 



to unknowingly drive north out of town into the planned ambush 
zone unaware of the danger. 

From the vantage point of where Chief Graf stopped them, 
the Lanengas could see the Marshals standing outside of the 
Ramcharger, aiming their weapons at the Kahl vehicles. The 
Lanengas later testified at the trial of Yorie Kahl. They re- 
counted that Chief Graf told them "there was going to be a 
shoot out and this time the police were in the wrong." 

Two other citizens who had attended the meeting at the 
Medina Clinic where Gordon Kahl was present were also 
prevented by Chief Graf from entering the ambush fire zone. 
Chief Graf told them, "We are going to try to save at least 
Dave 's [Broer] life. " Other people at the scene also testified 
that Graf told them "there is a tax protester up there and now 
they are going to shoot him. " 

The Kahl entourage first saw the roadblock ahead of them 
on a hilltop a mile north of Medina as they topped a hill on 
the edge of town. Still unaware that they were the intended 
targets of the road block they pulled into the first driveway 
they could to turn around. Immediately, the Kahl's exit route 
from the areas was blocked by a Dodge Ramcharger which 
had followed the Kahl vehicles out of Medina. 

In the Ramcharger were Deputy U.S. Marshals Cheshire and 
Hopson, and Stutsman County Deputy Sheriff Brad Kapp. In 
the roadblock ahead of the Kahls' vehicles were U.S. Marshal 
for North Dakota, Ken Muir, Deputy U.S. Marshal Carl 
Wigglesworth and Medina City policeman Steven Schnabel. 

After the Marshals had cut off all the Kahl vehicles' retreat 
routes from the planned ambush zone, the Marshals jumped 
out of their unmarked vehicles and aimed their weapons at the 
Kahl group. None of the law enforcement officers at the scene 
were in uniform. Deputy Marshal Cheshire even told Deputy 
Marshal Hopson to take off his badge. 

Once out of their cars and with their weapons aimed directly 
ut the Kahl group, the Marshals began yelling . . we're going 
to blow your (Kahl group) goddamn heads off," and are 

going to die." 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

Gordon KaW, Yorie Kahl and Scott Faul then got out of 
their cars and began to separate from each other. None of the 
Marshals knew who Gordon Kahl was in the group or what 
Gordon Kahl looked like. Relying ONLY on the description 
provided by Deputy Kapp who had seen Gordon Kahl attending 
the meeting in Medina, the Marshals directed their shouts, 
their attentions, their weapons DIRECTLY AT YORIE KAHL 
WHO, AS YOU WILL RECALL, WAS WEARING HIS 
THER GORDON'S COAT AND HAT. 

This stand-off continued for a period of time that is still 
disputed ranging from a minute to as many as 13 minutes. 

Then U.S. Marshal Ken Muir fired the first shot of the shoot- 
out. Firing his .38 Special revolver at Yorie Kahl Marshal Muir 
hit YORIE KAHL in the grip of the pistol Yorie was wearing 
in his shoulder holster. As Yorie Kahl fell backwards from 
being hit the "Ruger mini- 14 ranch rifle" Yorie Kahl was 
carrying discharged twice. Yorie Kahl was then shot in the 
abdominal region by Deputy Brad Kapp with two shotgun 
blasts. Marshal Muir himself-rated as one of the top ten pistol 
shots in the United States of America-then fired three more 
times hitting Yorie Kahl repeatedly with his fire. 

During the balance of the gun battle, Victim Yorie Kahllay 
on the ground with his near fatal wounds. 

Kahl friend and traveling companion Scott Faul attempted 
to retreat from the fire zone but Faul's escape was cut off by 
an unknown but armed assailant who turned out to be U.S. 
Deputy Marshal Wigglesworth. With his escape cut off, Scott 
Faul retreated and headed back towards where Yorie Kahllay 
wounded on the ground. At this time, Scott Faul also came 
under fire from the Marshals. In response to being fired upon, 
Scott Faul returned fire in the direction of the Ramcharger. 

Seeing his son Yorie repeatedly shot and believing Yorie 
to be dead, Gordon Kahl himself opened fire on the Marshals, 
Deputy Kapp and Officer Schnabel. 

Marshal Muir and Deputy Marshals Cheshire and Hopson 
quickly succumbed to the deadly volley of fire laid down by the 
veteran aerial gunner Gordon Kahl. Deputy Kapp and Officer 



363 



THE FRANKLIN COVER-UP 



Schnabel were soon wounded and out of the fight also. Gordon 
then went over to the Ramcharger and put two more rounds 
into Deputy Cheshire. 

By the time Scott Faul reached the wounded Yorie Kahl, 
the shooting had stopped. Scott Faul then assisted Yorie Kahl 
into a vehicle and headed into Medina to the Medical Clinic. 

The moment the shooting had stopped, and right on schedule, 
ambulances and rescue personnel began arriving. The injured 
were taken directly to the Medina Clinic where Dr. Martin 
began treating them and preparing the critically wounded for 
transportation to the Hospital in Jamestown, North Dakota. 
Marshal Hopson and Yorie Kahl underwent emergency surgery 
for their wounds. Hopson was disabled from the effects of his 
head wound, but would recover sufficiently to testify in the 
rush to judgment called a trial 85 days later. 

David Broer, Vern Wegner and Scott Faul all surrendered 
within a day. Joan Kahl was arrested along with Yorie Kahl 
at the Jamestown Hospital. Gordon Kahl remained at large for 
four months and became the center of what was officially called 
by U.S. Marshals the "largest manhunt in American History." 

IV. THE RUSH TO JUDGMENT 

Eighty-five days after the events at Medina and fifty-nine 
days after the Grand Jury returned an indictment, trial began 
in U.S. District Court for North Dakota, Southeastern Division. 
The trial was held before District Judge Paul Benson in Fargo 
and prosecuted by Assistant U.S. Attorneys Lynn Crooks and 
Dennis Fisher. The details of the trial and the issues there under 
attack are presented in more detail in the Motion to Vacate, 
Set Aside, or Correct Sentence. It suffices here to generally 
list the defects in what was passed off as a trial in Fargo, North 
Dakota thirteen years ago. 

In the words of the Chief Judge of the Eighth Circuit Court 
of Appeals, record amply demonstrates the defendants 

did not and could not receive a fair trial in the District of 
North Dakota. " United States v. Faul, et al., 748 F.2d 1205, 
1223 (Judge Lay, dissenting opinion). 

Below is an enumerated list of major issues that prevented 



364 



JVSTICE DEPT. MURDER OF GORDON KAHL 

the Petitioner, Yorie Kahl, from receiving a fair trial. But for 
the illegal actions of the United States Government in the 
prosecution of the Petitioner, and the lack of a fair and impartial 
Judiciary, the Petitioner could have proved his innocence. The 
Petitioner, Yorie Von Kahl: 

A. Was denied counsel and held incommunicado for ten 
days while he was interrogated by federal and state law enforce- 
ment agents. 

B. Was prejudiced by denial of access to the Petitioner 
by available counsel and private investigative services being 
offered during the above ten day period. 

C. Was denied effective assistance of counsel. 

D. Was prejudiced by a partial and biased judge. 

E. Was prejudiced by material non-disclosure and conceal- 
ment by a juror. 

F. Petitioner was tried by a jury that was "Presumably 
ased" and "Actually Biased." 

G. Was prejudiced by prosecutorial misconduct. 

H. Potential defense witnesses were hindered or prevented 
from testifying as a result of threats, intimidation and subterfuge 
by government officials. 

I. There was improper contact with the jury by U.S. Deputy 
Marshal Carl Wigglesworth, a victim in the shooting incident. 

J. On February 14, 1983, U.S. Marshals traveled to Medina, 
North Dakota, for the purpose of killing Gordon Kahl. The 
spurious arrest attempt of Gordon W. Kahl was illegal and not 
based on a valid warrant. 

K. Was prejudiced by numerous other incidents and actions. 
For sure, the cumulative effects combined to deny the Petition- 
er's right to a fair and impartial trial and his rights to due 
process of law. 

From the beginning of the proceedings the Defendants tried 
to have Judge Paul Benson removed from the case. Judge 
Benson was the Masonic brother and sponsor of the deceased 
Marshal Muir. The defendants were well aware of the animus 
Judge Benson bore for any who would dare to defend them- 
selves against Government agents. Seven years earlier in an- 
other proceeding involving confrontations between citizens and 



365 



THE FRANKLIN COVER-UP 



government agents at a place called WOUNDED KNEE, the 
team of Benson and Crooks had gained similar attention for 
their handling of the Leonard Peltier case. 

From the start the push was on to rush the trial and prejudice 
the Defendants. Prior to trial there was a tremendous amount 
of negative pretrial publicity and a deliberate disinformation 
campaign carried out by the Government while a unilateral 
gag order was being enforced on the Defense. The biasing 
effect this had on the jury pool was demonstrated during jury 
selection. There was a presumption of bias in the jury and it 
was proven after trial there was actual bias. 

One juror willfully gave deceitful answers to specific ques- 
tions during voir dire relative to the juror's personal relationship 
with the prosecutor, Mr. Crooks. 

Incredibly, the impaneled jury was guarded and even enter- 
tained by U.S. Marshals service who were the victims and 
clearly viewed themselves as a whole as the victims of the 
shoot out with the Defendants. Marshal Wigglesworth, himself 
a participant in the Medina Shoot-out and one of the assault 
victims of the shoot-out, engaged with the other Marshals 
guarding the Jury in recreational activities with the jury 
members. 

When such conduct was reported to Presiding Judge Benson, 
the Judge responded by simply brushing aside the incidents, 
refusing to hold a hearing on the matter, and insuring that the 
event was not recorded when Judge Benson met in chambers 
to discuss Wigglesworth's jury contact incidents with a select 
portion of the attorneys defending in the case. 

The Petitioner was denied effective assistance of counsel. 
U.S. Magistrate Hill appointed an inexperienced civil attorney 
named Warren Sogard to defend [in] the most notorious crimi- 
nal trial in North Dakota history. 

Sogard had seventy-six days from the time of his appoint- 
ment to the date trial began to prepare for an extremely complex 
multi-defendant homicide trial. Sogard did not even see his 
client, Yorie Kahl, for days after his, Sogard' s, appointment. 

Even more shocking, Sogard spent almost all of his time 
between appointment as the attorney for Yorie Kahl until the 



366 



JUSTICE DEPT. MURDER OF GORDON KAHL • 

time trial began OUT OF TOWN AND OUT OF TOUCH 
WITH HIS CLIENT THE DEFENDANT, APPARENTLY BE- 
LIEVING AS WELL AS ASSURING YORIE KAHL THAT 
THE TRIAL WOULD NOT OCCUR IN LESS THAN A 
YEAR. This was simply one more example of Sogard's advo- 
cacy deficiency. 

Besides being prejudiced by ineffective assistance of coun- 
sel, Yorie Kahl was denied counsel prior to the appointment 
of Warren Sogard. Attorney Jerry Lafountain and private inves- 
tigator-paralegal Gary Fredricks from Montana traveled to 
Jamestown, North Dakota to offer their services to Yorie Kahl 
and the other Defendants. Lafountain Fredricks made 

themselves available to the family but they were denied access 
to the Defendants including Yorie Kahl who was still in the 
hospital recovering from his wounds. For ten days Yorie Kahl 
was prevented from obtaining counselor contacting anyone, 
including Jerry LaFountain, that could or would provide or 
obtain counsel for him. Assistant United States Attorney Lynn 
Crooks, lead prosecutor on the case, was quoted after trial 
saying "We did everything in our power to make sure that they 
did not wind up having tax protester lawyers." 

When Jerry LaFountain and Gary Fredricks arrived in Mon- 
tana they were harassed, intimidated and threatened by federal 
and local law enforcement officers. The motel room and car 
of the attorney and investigator were bugged. Everywhere La- 
Fountain and Fredricks went they were followed by a detach- 
ment of law enforcement. Lafountain and Fredricks were not 
allowed in the area of the shooting incident to investigate. They 
went to interview Dave Broer's Wife, Joanne Broer, and the 
marshals followed them there. The legal team then departed 
the Broer residence to see Shauna Faul, wife of Defendant 
Scott Faul. While LaFountain and Fredricks were driving on 
the interstate and no one else was on the highway, they came 
upon a road block and were then blocked from behind by U.S. 
Marshals. The Marshals searched LaFountain, Fredricks and 
the car including LaFountain's legal papers. 

Another incident involving Mr. Lafountain and Mr. Fred- 
ricks was staged for their benefit. Lafountain and Fredricks 



367 



THE FRANKLIN COVER UP 



went to the Ramada Inn in Jamestown one night for entertain- 
ment. The place was full of U.S. Marshals. The Marshals 
dragged a young woman outside and stripped half of her clothes 
off. This happened within the view of LaFountain and Fredricks 
who were standing inside the lobby of the hotel watching 
through the window. LaFountain and Fredricks did not go out 
to help the woman fearing the incident was a set up to charge 
LaFountain and Fredricks with rape and assault. The half nude 
woman the Marshals were assaulting came in screaming at the 
Marshals. Jerry LaFountain went to the front desk to call the 
police and the female desk clerk was herself, a U.S. Marshal. 
Jerry LaFountain then called a Federal judge to advise him of 
what was happening to insure the safety of LaFountain and 
Fredricks. The Marshals later harassed LaFountain and Fred- 
ricks about it. The Marshals told LaFountain and Fredricks the 
U.S. Marshals didn't like LaFountain and Fredricks calling 
"their" judges. It was clear to LaFountain and Fredricks that 
if they went outside they would be arrested or shot for rape. 

Gary Fredricks said that they were so scared at one point 
they couldn't sleep for 50 hours. LaFountain and Fredricks 
ultimately got so scared they decided to go back home. LaFoun- 
tain and Fredricks agreed together not to do or say anything 
because they feared for their own lives and those of their family. 

The first testimony in the Government's case was not from 
witnesses with actual knowledge relevant to the case or from 
experts. The first testimony was from the grieving widows of 
the dead marshals presenting studio photos of their husbands 
and telling of their children. There was no probative value to 
their testimony whatever. The only purpose served was to 
gamer sympathy with the jury and create animosity and preju- 
dice against the Defendants. 

The government withheld exculpatory evidence from the 
defense that would have substantially bolstered the Petitioner's 
affirmative defense. The pistol that saved the life of the Peti- 
tioner by stopping the bullet that Marshal Muir meant for 
Gordon Kahl, was not permitted to be utilized by the defendants 
to help prove their case. The government withheld knowledge 
of the existence and use of informants and undercover agents 



368 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

who could have provided exculpatory evidence of the events 
of February 13, 1983 as well as knowledge of the plan by the 
U.S. Marshals to kill Gordon Kahl. The APB upon which the 
Marshals relied was inaccurate and based on false information 
provided by a confidential informant in Carrington, North Da- 
kota, whose name was withheld from Defendants. Additionally, 
it is now known that a key undercover agent named Mike 
Phillips from Ashley, North Dakota, who was a principal in- 
volved in helping orchestrate the Shoot Out, was concealed 
from the Defendants at the trial stage. The existence of the 
Carrington informant who generated the suspicious APB was 
also improperly concealed from defendants at trial. 

Potential defense witnesses were hindered or prevented from 
testifying as a result of threats, intimidation and subterfuge by 
government officials. The intimidating presence oflaw enforce- 
ment officers following LaFountain and Fredricks as they went 
to interview witnesses was very effective. An unusual number 
of Government witnesses testified contrary to statements and 
reports made shortly after the incident and subsequently sup- 
plied to defense. 

Especially interesting is the case of Defense witnesses Mark 
and Carol Lanenga. After the Lanengas finished testifying at 
trial and had been excused by the Court an FBI agent came 
up to Carol Lenenga and said "We're not done with you yet." 
This upset Mrs. Lanenga as well it should have. A few months 
after trial the Lanengas heard from the IRS that they were being 
audited. The Lanengas thought it was an unusual coincidence 
though IRS said it was routine. When the Lanengas were audited 
again within a few months, it was no coincidence. Another 
witness called by the defense was U.S. Deputy Marshal Bud 
Warren. Deputy Warren was also dunned by IRS after testifying 
too truthfully for the defense. After going through the audit he 
also received a refund. 

Incidents of prosecutorial misconduct were condoned and 
sometimes defended by Judge Benson. During cross examina- 
tion of Government witness Lonny Reuer by defense counsel 
Mr. Ramlo, several people in the courtroom including jurors, 
defendants and defense counsel observed the following: (i) Mr. 



369 



THE FRANKLIN COVER-UP 



Ramlo would ask Mr. Reuer a question; (ii) the witness, Mr. 
Reuer, would then turn his head to look at the prosecution 
table; (iii) Mr. Crooks would then shake his head up and down 
or side to side; (iv) Mr. Reuer would then turn his head back 
to face Mr. Ramlo and answer the question. This happened 
several times until Mr. Ramlo noticed others in the courtroom 
following this action. He then asked the witness "When Mr. 
Crooks shakes his head at you like that, is that a signal to 
answer one way or another?" Assistant U.S. Attorney Dennis 
Fisher objected, and Judge Benson immediately came to the 
defense of Mr. Crooks. "I've watched Mr. Crooks try cases 
for 12 Years ... The question is uncalled for." He further 
chastised Mr. Ramlo for suggesting such a thing totally ignoring 
that perhaps what Mr. Ramlo said was true. Noting the futility 
of pressing the issue, Mr. Ramlo dropped it, asked a token 
question of the witness and abandoned cross examination. 

On Appeal the majority opinion did not address some of 
the issues appealed. After saying 28 U.S.c. §144 and 455 are 
similar and that it would consider them together the Court 
ignored §455. The Court was also disingenuous in the way it 
dealt with the issue of biased prospective jurors. The Court 
misconstrued the fact that fifty percent of the prospective jurors 
that were actually questioned were removed for cause arising 
from partiality. Judge Lay in a footnote to his dissent stated, 
"The Majorities statement that only 27% of the jurors attributed 
their partiality to media coverage is misleading." United States 
v. Faul, et al, 748 F.2d at 1231 fn. 8. It should not matter what 
their partiality was attributable to, just that they were partial. 

The details of the grounds for the motion under §2255 appear 
in the motion itself. One thing is certain. As Chief Judge 
Lay wrote in his dissent, "The record amply demonstrates the 
defendants did not and could not receive a fair trial in the 
District of North Dakota." United States v. Faul, et al., §748 
F.2d at 1223. 

EXECUTION IN ARKANSAS 

On February 17, 1983 Leonard and Norma Ginter of Walnut 
Ridge, Arkansas, were introduced to Gordon Wendall Kahl by 



370 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

an acquaintance of theirs, Bill Wade. Gordon Kahl requested 
the Ginters house him after Gordon advised them that he was 
wanted by federal authorities. On February 25, 1983, Gordon 
Kahl wrote out an affidavit witnessed by Leonard Ginter re- 
counting the events of the shooting incident in Medina, North 
Dakota on February 13, 1983. Gordon Kahl expressed that if 
he was discovered he would not be given a chance to surrender 
before being killed. Because he expected to be murdered Gor- 
don Kahl wrote out the affidavit to preserve details of the 
previous events so that the truth could eventually be made 
known. For thirteen years these original documents, made in 
contemplation of impending death, have been hidden. Defense 
attorney for Yorie Kahl has now obtained this original sworn 
affidavit of Gordon Kahl. In these documents Gordon Kahl 
details what actually happened at the Medina shoot out February 
13,1983. These documents clearly exonerate Yorie Kahl. Cop- 
ies of these documents were not allowed to be admitted into 
evidence in the original trial because they were not the originals. 

About the middle of April, 1983, Bill Wade had heard that 
the FBI was closing in on Gordon Kahl so Leonard Ginter 
took Gordon Kahl to the house of Art Russell. Gordon Kahl 
stayed at the Russell house until Leonard Ginter brought him 
back to the Ginter's house the last part of May, 1983. On June 
2, 1983 Gordon Kahllearned of the conviction of his son Yorie 
Von Kahl. Gordon Kahl expressed to Leonard Ginter his desire 
to surrender to federal authorities to help his son. 

The next day, June 3, 1983, Leonard Ginter left the house 
without explanation at 5:15 P.M. and started driving up the 
driveway when he was seized by FBI Special Agent James 
Blassingame. Gordon Kahl was seated at the kitchen table 
eating dinner when Leonard Ginter left. At 5:30 p.m. the news 
was just coming on and Gordon was eating dinner and watching 
for news of his son Yorie Kahl. Norma Ginter heard a noise 
outside the house and went to look out the door. She was 
grabbed by Sheriff Gene Mathews. Norma Ginter was told to 
be quiet, handcuffed and taken around the corner of the house 
next to her husband Leonard Ginter. 

Sheriff Mathews left Leonard and Norma Ginter with Special 



371 



THE FRANKLIN COVER UP 



Agent Blassingame while Sheriff Mathews and Deputy U.S. 
Marshal Hall entered the house armed with pistols. State Police 
Investigator Ed Fitzpatrick stayed outside armed with a shot- 
gun. Sheriff Mathews stepped through the kitchen doorway 
undetected by Gordon Kahl. Sheriff Mathews then shot Gordon 
Kahl in the back of the head with Mathews's .41 Magnum 
revolver. This single shot in the house was followed by four 
or five shotgun blasts directed into the house through the kitchen 
window by State Police Investigator Fitzpatrick. Sheriff Ma- 
thews was hit by the shotgun pellets fired by Fitzpatrick while 
he was standing outside on the patio. This all transpired in less 
than a few minutes. Sheriff Mathews remained in the house 
twenty to forty minutes after that. 

The Ginters were then moved about 50 feet west of the 
house and pushed down to the ground. FBI agent David King 
then pointed a gun at Leonard Ginter and said, "I'm going to 
kill you, son of a bitch," several times. About ten minutes later 
the Ginters were taken a little bit further west to where Leonard 
had previously removed a large rock. The various law enforce- 
ment personnel were continuously shooting into the house this 
whole time. Leonard and Norma Ginter were then moved to 
the road up the hill and handcuffed to a police car about 250 
feet from the house. Immediately after the initial shots were 
fired, Special Agent Blassingame went to Leonard Ginter and 
asked him "was Gordon Kahl clean shaven?" Leonard Ginter 
answered "the man at my house was clean shaven." Agent 
Blassingame then immediately went back to the house. 

At about 6:00 PM an unidentified law enforcement officer 
positioned up the hill southwest of the house started shooting. 
Leonard Ginter said two of the many shots from this shooter 
sounded similar to the sound made when bullets hit a deer. 
This sound came from the comer of the garage. At this time 
different people started hollering that Sheriff Gene Mathews 
had been shot. Dero Downing, an FBI agent that was at the 
scene testified at trial that the wounded Sheriff Mathews came 
out of the house and was subsequently mortally shot in his 
side by the comer of the house as Leonard Ginter had described. 
The autopsy investigation would later find glass and shotgun 



372 



JUSTICE DEPT. MURDER OF GORDON KAHL •_ 

pellets in Sheriff Mathews's bullet-proof vest. This was from 
Mathews being shot while Mathews was inside the house. This 
shot was from a shotgun fired by State Police Investigator 
Fitzpatrick through the glass of the kitchen window. 

In response to Sheriff Mathews being shot a police car then 
came down the hill on the driveway to assist him. The car was 
driven to the comer of the house where Mathews had been 
shot. Within only a minute or two the police car came back 
up the road past where Norma and Leonard Ginter were now 
handcuffed to a police car. The car went right by Leonard 
Ginter and Ginter could see Sheriff Gene Mathews alone in 
the back seat. Mathews appeared to be dead and was receiving 
no attention. This was about ten or fifteen minutes after six 
o'clock p.m., forty minutes after Gordon Kahl had been shot 
and killed. 

Immediately after Leonard Ginter saw Sheriff Mathews be- 
ing taken away, Ginter heard a radio transmission from the 
police car he was handcuffed to. The broadcast said that Bill 
Wade had been shot. The law enforcement officers obviously 
did not know who had actually been killed in the house, but 
the broadcast confirmed the man in the house was dead. Bill 
Wade's family was called by people listening to police scanners 
to see if Bill Wade was dead. Bill Wade answered the phone 
and advised the caller he, Wade, had not been shot. 

Around eight o'clock p.m. Leonard and Norma Ginter saw 
Tom Lee, the City of Ravenden Marshal, with two five gallon 
cans of fuel. Lee stopped right behind the police car the Ginters 
were still handcuffed to and began stirring the contents of the 
cans. Lee then went on to the roof of the house and poured 
the contents of the cans down a roof vent. The fuel was then 
ignited by dropping smoke grenades and tear gas canisters into 
the vent. Mr. Lee testified by sworn affidavit that he was ordered 
to do this by FBI agents at the scene. 

The Ginters were then taken up the road to the top of the 
hill. Walking up the hill to the police car in which they would 
be transported, the Ginters could see their house was on fire. 
Gordon Kahl had been confirmed dead about forty minutes 
after the initial shots were fired and before the house was 



373 



THE FRANKLIN COVER-UP 



burned. The evidence suggests that law enforcement officers 
at the scene knew Gordon Kahl was dead before fire was set. 
Gordon Kahl's body was found in front of a large picture 
window, easily visible to the SWAT Team from outside of 
the house. 

Later independent investigation would show accelerant pour 
points were found all over the house, in corners, on the body 
as well as under the roof vents where accelerants were admitted 
to have been poured. The body was definitely burned by materi- 
als not found in the house. The temperature required to burn 
human bones is higher than what could be attained by what 
was in the house or even by gasoline. Neither would 10 gallons 
of fuel poured down the roof vents have been enough to reach 
the body where the body was or burn the body to the extent 
it was. Considering the accelerants found on the corpse at 
autopsy, fuel practically had to have been poured directly on 
the body. 

The feet and one hand of Kahl' s body were either completely 
burned off or cut off. Part of a foot was later found suggesting 
that the hand and feet had been cut off. Whichever the case, 
the fire was hot, it was deliberately set, and it destroyed a lot 
of evidence. 

CONCLUSION 

As stated in the foreword of this paper this case is one of 
an unfortunate chain of events complicated by compounding 
errors. The negligent manner in which the original sentencing 
of Gordon Kahl was mishandled served to prove beyond any 
reasonable doubt, in Gordon Kahl' s mind, the duplicity of the 
Federal Government and its court system in which he was 
selectively prosecuted. To Gordon Kahl, the Man whom the 
Media and Government described as paranoid fanatic, this treat- 
ment confirmed Gordon Kahl' s belief that the courts were 
corrupt and validated his deeply held conviction that the U.S. 
Government was acting as an outlaw government. 

Whether it was mere negligence or by design, the illegal 
warrant used to give color of law to the actions of the U.S. 
Marshals at Medina, North Dakota, was nothing less than a 



374 



JUSTICE DEPT. MURDER OF GORDON KAHL 

license to kill. The illegality of the outrageous actions of the 
Government in provoking the incident at Medina is unconscion- 
able and inexcusable. 

The resultant proceeding was mischaracterized as resem- 
bling a trial. Whether it was the defective voir dire, improper 
contact and influence with the jury by the Marshal's service 
and a victim-witness, prosecutorial misconduct, intimidation 
of witnesses and legal counsel, ineffective assistance of counsel, 
or an assassination plot by certain government officials, any 
one of these issues was a gross violation of the Petitioner's 
right to due process of law. Anyone should be enough to 
warrant a reversal of the verdict. The cumulative effect of other 
infringements of the Petitioner's rights combined to unfairly 
prejudice him. The major individual issues of this case, are 
outrageous. It is for the prevention of this kind of government 
misconduct and persecution of political dissidents that constitu- 
tional protections were memorialized in the Bill of Rights. 

The fiery Arkansas chapter of this saga is bizarre to say the 
least. Gordon Kahl was never given a chance to surrender and 
the officers involved did not make any attempt to subdue Kahl 
when they had the chance to. The cloud of suspicion that hangs 
over the true identity of the burned corpse found in the Ginter 
house may never dissipate. 

The Arkansas chapter of this saga would be the last were 
it not for the continued unconstitutional and unjust incarceration 
of Yorie Kahl and Scott Faul. For thirteen years the Petitioner 
and Scott Faul have been model prisoners demonstrating every 
day they are not typical criminals, but political prisoners. 

The whole Kahl affair and the injustice of it can be identified 
as the defining moment in American history that spawned the 
constitutionalist, patriot, militia movement. The events leading 
up to Medina and following were an injustice resembling and 
predating the events at Ruby Ridge, Idaho in August 1992. The 
conduct and atmosphere of the trial of the Medina defendants is 
typified by the answers received by members of the United 
States Senate Judiciary Committee hearings on Ruby Ridge in 
1995. In response to the question from Senator Kohl, "Why is 
the death of a Marshal different in terms of response than if 



375 



THE FRANKLIN COVER-UP 



it's a civilian?" Henry Hudson, former director of the Marshals 
Service, angrily replied. "Because that is the height of defiance 
of the government." 

The Petitioner asks of you to do justice and reverse the 
injustice done to him and give him relief by granting him a 
new trial. 



The case of Yorie and Gordon Kahl, as well as the broader 
militia movement, were subjects I frequently discussed with 
Bill Colby. In fact, I was surprised by his intense interest in 
the whole matter. Just two weeks before he died, Bill gave me 
some very pointed advice on the matter. 



376 



CHAPTER 25 



IN MEMORIAM 
BILL COLBY 



On April 27, 1996, my dear friend and mentor, former Central 
Intelligence Agency director, William Colby, disappeared, sup- 
posedly while boating on the eastern shore of Maryland. Ten 
days later, his body was fished out of the water, less than a 
mile from his weekend home. His death was pronounced an 
accident, probably caused by a heart attack, resulting in his 
falling into the river and drowning. Bill's sudden, and tragic 
death, prompts me to recount some features of our 25 -year 
relationship, which bear directly on the events under discussion 
in this book. They will hopefully shed further light on his 
amazing life, and, perhaps, also on the circumstances surround- 
ing his most untimely death. Bill Colby was one of the pivotal 
figures in unearthing the Franklin scandal. Without his persis- 
tent support and guidance, this book would have never been 
written. 

More than once, I was determined to put Franklin behind 
me, and write it off as a horrible experience that I could do 
nothing about. Often, I would ask myself, "Why should I have 
any responsibility to do something, when others in positions 
of power and government responsibility would do nothing?" 
I know that Senator Loran Schmit, the head of the Nebraska 
State Senate's Franklin investigating committee, felt the same 
way. I told Bill one time: "I have done all I can do, and have 
been burned badly-financially and credibility-wise-and, I 
am sure, politically. I think it's time to just let it drop." 

It was at those times that Bill Colby kept encouraging me 
(and Senator Schmit), kept pushing us, almost forcing us to 



377 



THE FRANKLIN COVER-UP 



keep going, and to keep the press apprised. To quote his exact 
words, "This case is so much bigger than you think. It goes 
to the very highest levels; we have to keep pulling the strings." 
His idea was not to investigate further-which he repeatedly 
warned me could be very dangerous-as to shine the sharp 
glare of publicity onto what had already been discovered, to 
create the possibility of a real investigation. 

Bill always promised that he would help me as much as 
possible, behind the scenes and, if necessary, publicly. And, 
Bill always delivered. 

When the Discovery Channel program, Conspiracy of Si- 
lence, was being prepared, the British investigative team in- 
sisted that they would not go forward on the program unless 
they had the on-camera personal interview, and verification of 
Bill Colby himself, that John DeCamp was reporting the truth 
with respect to Franklin, and with respect to this book, The 
Franklin Cover-Up. Colby went on camera, and thoroughly 
shocked the Yorkshire T.V. team in how strongly he came out, 
risking himself, to support me and my work on Franklin. 

Bill also wrote a letter to Attorney General Janet Reno, in 
which he strongly recommended that the Justice Department 
investigate this case from the standpoint I outlined in my book, 
a copy of which he enclosed with his letter. He got a formal 
response back from a Justice Department official, promising 
that the Department would indeed look into the case. 

But then, Bill had always backed me up, right from the 
earliest days, beginning in Vietnam. 



I vividly remember my first encounter with Colby -in the 
late 1960s. He discovered me by examining files of new, young 
officers being shipped to Vietnam, who might have "special 
talents." that time, my ability to speak half a dozen lan- 
my training in Airborne, Jungle, and Ranger Schools. 
;< well as Vietnamese Language School, and the fact was a 
newiy graduated attorney when I was called into service, 
volunteered for is a Con>bat Captain, anoar- 



IN MEMORIAM: BILL COLBY 



ently struck Colby's fancy-or at least his curiosity. Colby 
was officially deputy ambassador to South Vietnam at that 
time, but was in reality the CIA station chief. He ordered that 
when I showed up in Vietnam, I was to be sent directly to 
him. I was. 

Immediately, Bill immersed me in the planning of his own 
creation: a secret program which would later be one of the 
most controversial operations of the Vietnam War- the so- 
called Phoenix Program. Yes, it was controversial, brutal, and 
at times horribly handled. But by the admission of the North 
Vietnamese leadership after the war, it was also the single- 
most effective, and most feared program the Americans carried 
out during the Vietnam war. 

It was Bill Colby, with his power and position as ambassador 
in Vietnam, in 1970, that made it possible for me to accomplish 
something never before done or after: to run for the position of 
state senator from abroad. I fought my entire election campaign 
from Vietnam, and won it-without ever setting foot on Ameri- 
can soil. I ran and won, despite the fact that the top brass, from 
the Postmaster General, to the heads of the Army and Joint 
Chiefs of Staff, had tried to stop me, because I was saying, 
for the first time, that which Bill Colby and others thought 
needed to be told to the American people. That was: "Let us 
win or get out, but let's not keep conducting a charade, where 
we simply kill American boys to support a corrupt regime 
while the truth is hidden from the American people." 

Back in the States, years later, as I marched through my 
political life and began practice as a private attorney, I 
maintained the contact with Bill, and often sought his advice. 
He dared-when it was truly unpopular to do so-to come 
back to Nebraska and testify for me on controversial issues, 
such as the Nuclear Test Ban Treaty in May 1986. 

Bill Colby had one characteristic rarely, if ever, found in 
politicians in this day and age. He told it like it is- the straight, 
unvarnished truth in simple, understandable terms. 

Colby proved that, when, as head of the Central Intelligence 
Agency (CIA), he took the CIA before the U.S. Congress, to 
reveal the Agency's "family jewels" and start the process of 



379 



THE FRANKLIN COVER-UP 



correcting the sins of the CIA. For this, President Gerald Ford 
fired Colby and replaced him with a man named George Bush. 

Colby told the truth again in December 1987, when he 
and I, and Henry Kissinger, and a couple of dozen prominent 
Americans, French, British, North Vietnamese, and former 
South Vietnamese leaders and journalists (Adm. James Stock- 
dale; Col. Harry Summers, Jr.; George Will; Al Santoli; Jean- 
Louis Arnaud; Ernesto Betancourt; Jacques Chaban-Delmas; 
Peter Collier; Sir James Goldsmith; Douglas Pike; Lam Ngoc 
Diep; Robert Komer; Olivier Todd; Nguyen Ngoc Quy; David 
Horowitz; Elliott Abrams; Tran Van Tong, to name a few) 
made our way to Paris, for three days, to sit around the very 
same table at which the Paris Peace Talks had been conducted 
15 years earlier. There we all conducted our own International 
Conference on the Vietnam War. 

Though not heavily reported in the U.S., in the rest of the 
world the Conference was heralded as the first real truth session 
on what happened in Vietnam, on both sides, and why we 
ended up where we did. 



Shortly before his death, Colby gave me my final assignment. 
It was the week just before the Oklahoma bombing, and I spent 
a good amount of time with him in Washington, D.C. I brought 
him up to date on the Militia of Montana case which he had 
been following closely, describing in detail the militias' fears 
that the government was planning an imminent attack on them. 

As I sought guidance from him on how to best handle the 
militia situation, Bill smiled and said, "John, it sounds to me 
like you have the makings of another book. Believe me," he 
continued, "I know this MilitialPatriot movement is more sig- 
nificant than most Americans, and particularly the press and 
politicians, could ever realize. I fear that our government does 
not understand the nature of this movement, nor its potential 
significance to this country," Bill said. 

As he continued talking, Bill became very intense. "I 
watched the Anti-War Movement render it impossible for this 



380 



IN MEMORIAM: BILL COLBY 



country to conduct or win the Vietnam War. I tell you, dear 
friend, that this Militia and Patriot movement in which, as an 
attorney, you have become one of the centerpieces, is far more 
significant and far more dangerous for America than the Anti- 
War Movement ever was, if it is not intelligently dealt with. 
And I really mean this," Colby concluded. 

"What are you saying?" I asked Bill. "Aren't you being a 
little melodramatic?" I asked him, more than a little upset at 
what I thought he was saying. "Dangerous?" I continued. "Hell, 
one Saturday night gang fight in Los Angeles is more dangerous 
than all the militias combined together from what I can see," 
I said. "In fact," I told Colby, "I'm willing to wager that you 
can't find any incidents of real danger or destruction across 
these United States that were, in fact, initiated by the militias. 
Every case I have ever heard about is a situation in which one 
of these characters was being attacked by some government 
agency over some rinky-dink crime in the first place," I argued. 
"And, so far as I can see, most of the patriot and militia people 
I have dealt with are the salt-of-the-earth Americans who truly 
believe they are trying to save America. The typical militia 
member is usually someone who has a lifetime of activity, 
establishing that role, first in the military, then as a family man 
or woman, and also as a businessman or hard-working lifetime 
employee somewhere. Most often they are mature adults, with 
twenty or more years of life's experiences and learning behind 
them, including paying taxes, being property owners, develop- 
ing their communities. 

"They are not, in most cases, an eighteen- or twenty-year- 
old kid, who has never held a job, been spoiled rotten, or 
ducked the draft or burned a flag or been arrested, or served 
time, or done drugs, or been a gang member or done drive-by 
shootings," I almost shouted at Colby, as I discussed this most 
important issue with him. 

"Just what is it that makes the patriot movement and these 
people so dangerous?" I demanded of him. 

Bill was now very intense. He spoke very slowly and very 
clearly, intending that there be no misunderstanding on my 
part of what he was saying. 



381 



THE FRANKLIN COVER-UP 



"It is not because these people are armed, that America need 
be concerned," Bill explained to my surprise. "It is not that 
these people stockpile weapons and have para-military training 
sessions, that they are dangerous," Colby continued. "What 
concerns me is something far more serious, that I fear our 
politicians do not see, cannot see, and and refuse to deal with," 
Colby said. 

"They are dangerous precisely because of everything you 
just said. They are dangerous because these people are, in 
most cases mature citizens who have done everything you just 
described and who, tragically and in many cases very justifiably, 
have lost faith in the integrity and honesty of their own govern- 
ment. Yes, they are dangerous because, to use your words, 
John, they are true patriots who are disenchanted with the 
government and the system they have grown up loving, support- 
ing and giving their lives and talents for from the moment they 
were born. For many of them, it is as if they learned their 
mother was a prostitute and that they are bastards. It really is 
that traumatic." 

I listened to Bill; I looked at him, and said, almost playing 
the devil's advocate by defending the politicians, "So what, 
Bill? There have always been unhappy people who think the 
politicians are crooked; that the government is bad; that the 
end of the world is coming or whatever. We call them nuts or 
crackpots or whatever and lock a few of them up now and then 
and go on with our business. What makes these people so much 
different or more dangerous than any other group who has 
tromped through history in the last 225 years of this coun- 
try's existence?" 

Then my friend, the man whom I have found to have a better 
grip on the processes of history than anyone else, delivered 
his punch line. "They are dangerous, John, because there are 
so many of them. It is one thing to have a few nuts or dissidents. 
They can be dealt with, justly or otherwise, so that they do 
not pose a danger to the system. It is quite another situation 
when you have a true movement-millions of citizens-believ- 
ing something-particularly when the movement is made up 
of society's average, successful citizens. 



382 



IN ME MORI AM: BILL COLBY 



"The handwriting is on the wall in several places," Colby 
continued. "We know from CNN and USA Today polls that 
about three out of every four Americans no longer trust their 
own government. And the distance between the government 
and the citizens is increasing instead of decreasing. And that 
means, quite simply, John, that there is a base of support for 
the patriot and militia community which is not visible and may 
not be seen or understood by our government. Our government 
and political leaders are still in the mode of viewing the outspo- 
ken and visible members of the so-called patriot movement as 
simply a few nuts who need to be shut up. This is a very 
dangerous trend. It is time for government and the media to 
begin closing the gap between the government, the media and 
the patriot movement, rather than exacerbating it. 

"The first step in that process is communication," Colby 
continued. Then, Colby stunned me with his next declaration. 

"John," he said, looking me in the eyes, "someone needs to 
step into the forefront and tell the story of the militias and the 
patriot movement-what it is, why it has developed, what it 
means to America if not properly addressed by government; 
who is involved and just how broad-based this movement or 
attitude is; where it is strongest, and how this movement can 
be positively directed, rather than negatively directed-perhaps 
by foreign powers. 

"That is what your next book should be, and it must be 
written," Colby instructed, "rather than simply spoken to me. 
And yes, John, I will do everything to help you do this book 
and tell this story. Your book must become the communications 
device where both sides of this controversy can go to learn 
about themselves but, more important, to learn about the other 
side." Colby concluded, "And you can and must do that because 
you are really in the perfect position, and have the capability 
to do it. In fact, right now maybe you are the only one in 
that position." 

I was shocked by Bill Colby's near-command to write a 
new book. True, as the attorney for some of the Montana 
Militia, I had been put in a unique position to see the inner 
workings of the militias, but from a position of objectivity, as 



383 



THE FRANKLIN COVER-UP 



a lawyer. I had first been drawn into the "militia scene" as a 
result of the wide circulation of this book. By the militias 
themselves, I was seen, not as an attorney, but as a combatant, 
against the worst forms of obscene corruption by our govern- 
ment, and by our nation's so-called elites. The fact that I 
was a practicing attorney and a former elected official was of 
secondary consequence. 

"I think you are serious," I said to Colby with a gentle 
snicker, trying to break the tension of the moment. "You really 
are going to help me do this militia book, as you call it- and 
I know when you say you will help, that means I have access 
to a world of intelligence and knowledge that cannot be matched 
anywhere else on this planet earth. I will do it," I promised 
Bill. "Start on it right away in fact. OK?" 

"Should be a best seller," Bill Colby said. "Next time I see 
you here in D.C. in the middle of May, you should have the 
first chapter of your new book, Militia, " Bill said. 

A few days later, on April 19, 1995, a bomb blew up the 
Federal Building in Oklahoma City. 

Within a year, my dear friend and longtime adviser was 
found dead in the Chesapeake Bay. 



I have very serious doubts about the description of Bill 
Colby's death that emerged from the police search and the 
subsequent coroner's inquiry. I do not possess any "secret 
information" about Bill Colby's final hours; I base my doubts 
on 25 years of near continuous contact and collaboration with 
the man, a collaboration which deepened in his final years. I 
knew Bill Colby very well; I knew his personal habits, his 
idiosyncracies. 

Colby had a sailboat and his little get-away cottage, where 
he went as often as he could. I visited him there on several 
occasions, as Bill invited me sailing whenever I was in town. 
Inevitably, however, the weather forecast would warn of a 
possibility of rain, or a drop of rain would fall, or he'd notice 
that the moon was not in the right position, or the sun too hot, 



384 



IN MEMORIAM: BILL COLBY 



or whatever. And Bill would decide not to take the risk and 
go out sailing. 

My point is simple. Bill Colby was the single most meticu- 
lously careful, programmed, organized individual I have ever 
encountered, especially when it came to matters of safety, 
security, and personal activities. Therefore, the description 
given in the media, surrounding his death, does not cohere with 
Bill Colby's personality, his character, his modus operandi, and 
my personal experiences with him over many years. Bill Colby 
was not the kind of person who would take off on an evening 
boating expedition, leaving his computer still turned on at his 
desk, his half-finished dinner still sitting on the table, and most 
of the lights on in the cottage. That was not Bill. 

Furthermore, Bill had been the victim of a "robbery" in 
Washington, D.C., not too long before his death, in which he 
had been badly beaten, and easily could have died. 

This "robbery" and his actual death were both mysterious 
incidents, in a relatively short span of time. I have a hard 
time believing in coincidences, when it comes to people like 
Bill Colby. 

His mysterious death has also brought to my mind, his own 
explanations of how people end up dead, in the course of 
our discussing the death of Franklin case investigator Gary 
Caradori-a death Colby himself had investigated. His exact 
statement on this was: it's done right, you'll never know 
how it was done, or who did it for sure. That's what profession- 
alism is all about." 

Colby described both professional assassinations, as well as 
some bungles. The case of Fidel Castro, he said, was one of 
the biggest fiascos that Bill had ever run across. Colby told 
the story how in one, now known, memorable sequence of 
screw-ups, the CIA tried to get Fidel's mistress to plant a tube 
of super toxic toothpaste onto Castro's bath stand. The ploy 
ultimately resulted in the girlfriend becoming a dead, ex- 
girlfriend. The blunders and screw-ups and lack of professional- 
ism, in the efforts to get Castro, drove Bill to insist that the 
CIA should simply quit trying to assassinate him. 

In contrast, Colby always used the example of Chilean Presi- 



385 



THE FRANKLIN COVER-UP 



dent Salvador Allende's death as the perfect assassination. "We 
didn't do that one," Colby informed me. "Everybody thinks 
we did. But, we truly did not. Someone else got to him before 
we did, because we sure were planning it. But, whoever did 
that one, really did it right. We (CIA) are taking the blame in 
the minds of most governments around the world. But despite 
the fact that we did not assassinate Allende, everybody knew 
we wanted to and, whoever did it, left no trails. The best 
example of a perfect assassination-no trails; somebody else 
takes the blame; mission accomplished." 

I rather suspect in my own mind that that is the situation 
with Colby's own death. 



In the aftermath of Bill's death, a line began to emerge that 
Bill was either deeply depressed, or suffering from some fatal 
ailment, and, perhaps, took his own life. I think a recounting 
of my last face-to-face discussion with Bill Colby should dispel 
this gossip for good. 

I had this meeting with Bill shortly before his death. We 
had a very lengthy discussion about life, and I asked him, 
among other things, "Bill, if you were going to pick any period 
of your life that you would say was the most satisfying and 
enjoyable, what two-, or three-, or five-year period would it 
be? World War II, Vietnam, your days as head of CIA? When 
would it be and what made it so special?" 

Without hesitation-exactly one week before he died-Bill 
said the following: 

"The last five years and for sure the next five years," Bill said. 

"Are you serious?" I asked. 

"Absolutely," Bill said. "Here's why. First, I have virtually 
no pressure; yet I am in a position to use my entire life's 
experiences and learning, and share them with the world to 
help make a difference. You know what I am doing immediately 
after I leave you?" Bill continued. "I am headed for Outer 
Mongolia to give a briefing and to talk to the heads of business 
and government there. 



386 



IN MEMORIAM: BILL COLBY 



"I just got back from Italy where I did the same thing. That's 
what I have been doing. I love it. Travel when you want and 
at somebody else's expense; receive the best treatment you 
could imagine-equal to or better than a head of state-but 
without all the responsibility, and pressure, and problems. And 
know that when you speak, they really do listen and know that 
you really can make a difference in world events, sometimes 
even more profound than presidents of countries. I love it. And 
I am in as good health as I have ever been. All the things I 
wanted to say, and all the places I dreamed of seeing, I am 
doing, and I'm going to keep doing it and enjoying it for at 
least the next five years, I hope," Colby concluded. 

"So, John, don't be discouraged," Bill assured me, "You 
are young yet, and your best and happiest years really are ahead 
of you." 



At the time of his death, Bill was working with Britain's 
Lord William Rees-Mogg, and his American sidekick, James 
Dale Davidson, publishing a series of newsletters, on interna- 
tional events, financial opportunities, and politics. In fact, he 
was working on an article for one of those newsletters when 
he died. 

Rees-Mogg and Davidson are strange birds. Lord William 
was, for over a decade, the editor-in-chief of the staid Times 
of London, and its Sunday Times of London. He fits the stereo- 
type of the classic English "Colonel Blimp," the blunt imperial- 
ist, who periodically uncorks with a nasty mouthful of invec- 
tives against the "commoner," or the darker-skinned races. 
After all, he used to write that in the coming age of society, 
an elite of 5% of the total population would rule over the other 
95% as virtual slaves. But Rees-Mogg is notjusty nasty-he 
represents great power. In England, it has long been said that 
The Times, the flagship paper of the Establishment, regularly 
announces Britain's foreign policy before the Foreign Office 
even knows what that policy will be. 

Rees-Mogg still writes a weekly column for The Times, and 



387 



THE FRANKLIN COVER UP 



is one of the major contributors to the newsletter, Strategic 
Investment. At the time of his death, Bill had emerged as 
Strategic Investment's leading "gee-strategist," writing a 
lengthy front-page article in almost every edition. (Since Bill's 
death, another former CIA Director, Robert Gates, has been 
coopted into writing a number of articles, occupying the space 
formerly reserved for Bill's words of wisdom.) 

But on several occasions, when I saw Bill or spoke with 
him during the last year of his life, I'd ask him whether I 
should subscribe to his newsletter, or, whether he'd just give 
me a few copies to look over. He always told me not to waste 
my money. 

"Ask me about any situation you're interested in, and I'll 
give you as thorough a briefing as I possibly can. But don't 
believe a word you read in that newsletter I'm writing for." 
Strange. But, then again, Bill Colby spent his entire adult life 
in the shadow world of spies and counter-spies. Maybe his 
involvement with Rees-Mogg was more complicated than I 
ever speculated. 

On at least one point, I know there was a savage difference 
between Bill and Lord Rees-Mogg and his crowd. Rees-Mogg 
is one of the most vocal detractors of President Clinton and 
the First Lady, and often devotes his Times of London columns 
exclusively to tirades against the American President. Strategic 
Investment, which goes out to a predominantly American read- 
ership, contains non-stop assaults against the Clintons. Not 
only was Bill's wife, Sally Shelton Colby, in a senior position 
in the Clinton Administration, but Colby himself had empha- 
sized to me, repeatedly, that Clinton was a great President, and 
that it was urgent that he be re-elected. 

And then I recall another incident, which I barely noticed 
at the time, but which now stands out in retrospect. Together 
with Rees-Mogg, the most savage press hound attacking Clin- 
ton was one Ambrose Evans-Pritchard, a Briton who has spent 
hundreds of hours in Arkansas "investigating" the President, 
and writing streams of articles in The American Spectator, the 
British Daily Telegraph, and other papers, attacking Clinton. 
Evans-Pritchard once called me, urgently demanding a meeting. 



388 



IN MEMORIAM: BILL COLBY 

I had never heard of him before, and so asked Bill if he had 
ever heard of this fellow, "Evans-Prickard, or something," as 
I put it, barely recalling his name. Bill answered, rather omi- 
nously, as I now look back, "His name is Ambrose Evans- 
Pritchard. And," he said, "be very careful." 

A week after our get-together, in which Bill spoke so enthusi- 
astically about his work and his travels, he was dead-under 
the most unusual circumstances, his death officially labeled 
an "accident." 

I did not believe it then, and I do not believe it now. But I 
do believe what Bill said: "If it's done right, you will never 
know how it was done, or who did it." 

And so, my dear friend, I wish you a last good-bye. I will 
do my best to carry out the final tasks you assigned me, as I 
always did, so many years ago, as a Combat Infantry Captain 
under your command, in the rice paddies and hamlets of 
Vietnam. 



389 



EPILOGUE 



I finally understood the true meaning of the Franklin case one 
night in early 1996. Watching television and skipping through 
the channels, I came upon the movie Billy Budd. Instantly I 
zeroed in on this movie, and my heart, rather than the channels, 
started skipping. 

By the time the movie ended, the Franklin cover-up made 
sense. Alisha Owen's imprisonment for telling the truth made 
sense. The protection of the perpetrators by our highest public 
officials, finally made sense. I understood, also, why it was 
necessary to discredit me, John DeCamp, and to kill Gary 
Caradori, with his eight-year-old son. Any nagging doubts I 
may have had about any aspects of Paul Bonacci's charges 
were laid to rest. And it was clear to me, at last, that public 
officials at all levels knew Paul was telling the truth, as they 
set out to destroy him. 

Where did the blinding revelation come from? Let me go 
back a few months, to my last attempt to get a new trial for 
Alisha Owen. At that hearing, Troy Boner, who had originally 
told Gary Caradori the truth, and who had been forced to recant, 
was preparing to testify-to tell the truth as you read it in his 
affidavit in Chapter 21. Troy Boner was going to provide the 
information in open court, under oath, that would blow the lid 
off the Franklin case and force a new trial for Alisha Owen. 

As Troy came into the courthouse, he was immediately 
ushered into a private room by county judicial authorities. He 
was advised that a "Special Attorney" had been appointed to 
protect him. For approximately one hour, while the hearing 
was delayed, Troy was cornered in a room with this "Special 
Attorney" and with other officials from the prosecutor's office, 



390 



EPILOGUE 



the same prosecutorial team Troy was about to testify 

against. 

When Troy came out of the meeting, I knew he was broken, 
his morale smashed. His head hung down. He could not, or 
would not look at anyone. 

As I approached Troy, his new court-appointed attorney 
tried to step between us. With probably the last ounce of courage 
he could muster, Troy leaned over and whispered to me, "Oh 
God, forgive me. They guaranteed if I talk here today, they 
will put me away for twenty years. Guaranteed I would never 
see the light of day again. Told me that I would be charged 
with perjury for my original testimony, if I opened my mouth 
today in court. Don't call me up there. I can't survive in prison. 
I know they can put me there. Look what they did to Alisha. 
Look what they did to my brother. I've got no choice. They 
told me I had to take the Fifth Amendment and refuse to testify. 
Otherwise, they promised I would be taken directly from court 
to jail." 

We all proceeded into the court room, where I called Troy 
to the stand. I showed Troy his affidavit. He hung his head, 
and when I asked my first question, "Would you please state 
your name?" Troy responded, "I take the Fifth Amendment," 
an answer he repeated, in a barely audible voice, to all my 
other questions. 

It was hopeless. I ceased my questioning, and shortly thereaf- 
ter the hearing ended. 

I walked back to the judge's chambers to clear up any final 
details. Judge Enbody had been specially appointed by the 
Nebraska State Supreme Court to this hearing, which I had 
won from the Supreme Court based on Troy's new information. 
(The next day I learned that he had been appointed to the Court 
of Appeals-a very substantial advancement in his career.) 

Sitting in Judge Enbody's chambers, with my head hung so 
low it was hitting my shoestrings, I was given the key to unlock 
the meaning of Franklin. 

"I do not understand it, Your Honor," I kept repeating. "As 
God is my witness, I do not think that there is a judge or other 
person involved in this case who does not know that horrible 



391 



THE FRANKLIN COVER-UP 



injustice has been done. Everybody knows that Alisha Owen 
is telling the truth and that she is being punished for it. And, 
Your Honor, a person has to be deaf, dumb, blind, and totally 
dishonest, not to know that some of this state's and nation's 
top businessmen and public officials have engaged in the worst 
crimes possible, which are now being covered up. And these 
kids, instead of being honored and protected for exposing these 
things, are being sent to prison. Why? Why? Why?" 

Judge Enbody looked at me. Slowly, his voice shaking, he 
began to talk. 

"I am just a man. I am not a god. I wish I were. I have no 
choice in what I have done. I am just a man, just a man, not 
a god. I am doing what I must do with the evidence before 
me," Judge Enbody concluded. He appeared even more shaken 
and upset than I was. 

I shook my head. "I don't understand. I just don't under- 
stand," I kept repeating. "Everybody knows what is happening, 
but nobody is willing to do anything about it. Why? Why?!!" 

Judge Enbody looked at me and said, very slowly, "If you 
want to understand the entire Franklin case, I can help you. 
Go read 'Billy Budd.' Read 'Billy Budd.' If you will do that, 
John, and if you understand the book, then you will understand 
the what and why of Franklin, and why it can be no other way. 
I do not say you will like it. I do not say you will agree with 
it. But at least you will understand it. That, I promise you. Go 
read 'Billy Budd'." 

Those were the last words I spoke with the Judge on the 
case. I left his chambers, burnt out, but angry. And I forgot 
all about Billy Budd, until the night I happened upon the movie. 

The story of Billy Budd is set in the British Navy near the 
end of the eighteenth century. Billy was a young sailor, who, 
although impressed into the British Navy, bore no ill will to 
the authorities for having dragooned him; indeed, he was the 
very picture of innocence and good-will, and was almost univer- 
sally loved aboard his war-ship. One officer, however, devel- 
oped an insane jealousy of Billy, and set out to frame him up 
for allegedly inciting mutiny. Since there had been several 
notorious mutinies in the British fleet at the time, the mere 



392 



EPILOGUE 



whisper of "mutiny" was enough to spread panic among the 
ship's officers. 

To make a long story short, because of certain incriminating 
appearances in the case, the captain and his senior officers, 
although they knew Billy was innocent of all charges, nonethe- 
less sentenced him to hang, a necessity-as they viewed it- 
to "save the system," not just on their own ship, but in the 
British fleet as a whole. 

Now I think I do understand the Franklin case. I know, now, 
that all the public officials involved in Franklin-whether they 
ever heard of Billy Budd or not-fully understood what they 
were doing. 

And what they all have done, and will continue to do in this 
case, Franklin, and no doubt many others like it, is this: Protect 
the "system" at all costs. The "system" is the only ultimate 
sacred cow-not any particular law or constitution, but only 
"the system." Because, ultimately, it is the system which makes 
certain that the individuals functioning within it-fromjudges 
to lawyers, to prosecutors, to politicians, to businessmen- 
have their places and positions, and opportunities and pecking 
order, and future. 

And, though it is unfortunate, that on occasion the protection 
of the "system" requires the deliberate sacrifice of perfectly 
innocent people, that is hoped overall to be the exception rather 
than the rule. But without the "system" . . . 

So, Judge Enbody, now I understand. And, as you said, I 
may not agree, but I do understand. 

But then I have one final, nagging question. How do I know 
when, or if, the "system" itself has become so corrupted, that 
evil is the rule, rather than the exception? And when that occurs, 
what do I do about it? 

But I think I know the answer to that one-myold command- 
ing officer in Vietnam told me what I had to do. I made some 
promises to Bill, and I intend to keep them. 



393 



ABOUT THE 
AUTHOR 



Senator John DeCamp-Author, Attorney, 16- Year-Nebraska 
State Senator, Vietnam War Vet, Businessman-was selected 
as 2005 Nebraska Vets Council President. Vets Council consists 
of VFW/Am Vets/American LegionlDisabled Vets.lOrder of 
Purple HeartlVietnam Vets., LEADERS. 

DeCamp made military history and political history with his 
first and only one of its kind 1970 Senate campaign run directly 
from Vietnam, where DeCamp was an Infantry Captain detailed 
to then-Ambassador William E. Colby, later CIA Director and 
DeCamp's lifelong friend. Captain DeCamp won that 1970 
Nebraska Senate election run from Vietnam without setting 
foot on U.S. soil. 

From 1974 through 1986, Senator DeCamp was hailed by the 
Omaha World Herald as the "... most powerful and effective 
senator in Nebraska. " But, since writing this book, The Franklin 
Cover-Up, the Omaha World Herald has attacked Senator 
DeCamp on front pages and editorially as the World Herald's 
worst enemy. 

DeCamp was born in Nebraska but his unusual experiences 
early in life helped make him a man of uncommon indepen- 
dence and determination. On his own from the age of thirteen, 
DeCamp traveled, lived, and worked in Europe and Iran, spoke 
SIX languages and graduated with a Doctor of Law Degree 
and became an attorney in 1967 in the Nebraska Bar when he 
was called to duty and ended up in Vietnam. 

DeCamp was a captain in Vietnam War and worked directly 



394 



ABOUT THE AUTHOR 



for Ambassador Colby to help establish the "Phoenix Program," 
which program DeCamp today condemns. 

In 1975, as Saigon was falling, DeCamp excused himself 
from the Nebraska Senate, went to Vietnam in the final days 
before Vietnam collapsed, and initiated and organized the world 
famous "Operation Baby Lift." This program evacuated 2,800 
Vietnamese/ American children orphaned in the war. These chil- 
dren were brought to the USA, where all were adopted or 
reunited with people from their own families. 

For this act, DeCamp was honored at the White House by 
the President of the United States, recognized by the u.S. 
Senate and, after being selected by newspaper editors across 
the U.S., was named and decorated by the Veterans Support 
Group "No Greater Love" as one of the Eight Most Outstanding 
Veterans of the Vietnam War. 

In 1991 John DeCamp filed the first-of-its-kind lawsuit in 
Federal Court charging THE OMAHA CATHOLIC ARCH- 
DIOCESE and fifteen other prominent individuals and institu- 
tions, including Larry King and World Herald Publisher Harold 
Andersen, with conspiracy to deprive Paul Bonacci of his civil 
rights. DeCamp's suit detailed slander, false imprisonment, 
child abuse, assault, battery and infliction of emotional distress 
suffered by Bonacci. THIS LAWSUIT with the Catholic arch- 
diocese of Omaha as the FIRST NAMED DEFENDANT was 
attacked by the press and the politicians, and particularly certain 
members of the Catholic clergy as absolutely sinful and unfor- 
giveable and outrageous in the extreme. And, the Federal Judge 
allowed almost immediately for the Catholic Bishop and Arch- 
diocese to be excused from the suit. But, with persistence from 
DeCamp, and DeCamp's presentation of pictures and witnesses 
the pedophiles had denied even existed and shocking informa- 
tion that had previously been denied by all the defendants, A 
ONE MILLION DOLLAR JUDGMENT was won by DeCamp 
in the case against Larry King, the remaining defendant, who 
is prominent in this book. 



395 



INDEX 



ABC-TV, 148 

Abel, George P., 158 

Abrams, Elliott, 380 

Adams, Don, 258, 261 

Agency for International Develop- 
ment, xi, 177 

Ak-Sar-Ben, Knights of, 132-4, 
136, 144-5 

Albert, Paula, 150 

Albert Food Brokerage, 135 

Albert, Michael, 135 

Alejos Arzu, Roberto, 180 

Allen, Alfie, 69-70, 77 

Allende, Salvador, 386 

ALPHA, 329 

Amato, Angelo, 135 

Ambrose, David, 135 

Amen, Paul, 41-2, 44, 47-8 

America First Corp., 134, 144, 
158-9 

American Association for Protect- 
ing Children, xviii 

American Express, 148 

American Investment Group, 44-6 

American Savings Company, 40-1 

American Spectator, 388 

America's Most Wanted, 278, 
290-2 

Americares, 180 

Ameritas Financial Services, 158 

Andersen, Harold, 63, 68-71, 77, 



92,94-5, 100, 110, 115, 128, 
130-1, 134-5, 138-40,142-5, 
160, 177-8,218,251,288, 
327, 395 

Andresen, Robert, 80, 82, 83, 109- 
10, 146,314 

Andrews, Mark, 356 

Antelope County (Nebraska), 203 

Anti-Defamation League, 242, 294 

Anti-War Movement, 380-1 

Aquino, Michael, xx, 328-30 

Arkansas, 388 

Arnaud, Louis, 380 

Artichoke, Project, 328 

Aryan Nation, 330 

Association for Voluntary Steriliza- 
tion, 148 

Atlantic Telecast, 281-2 

Austin (Texas), 100 

Avvenimenti, 241 

Baack, Dennis, 83 

Baer, Alan, 68-71, 73, 77-9, 81-2, 
87,92, 100-2, 107, 124, 132, 
136, 140, 145, 158, 189, 204, 
217,239,248,250-1,302-4, 
308, 313-16, 321, 327 

Bahamas, 172 

Bahensky, Melvin, 40, 244 

Bailey, Edd H, 159 

Baird-Holz, 135 



397 



THE FRANKLIN COVER-UP 



Baker, Bill, 250 

Bakersfield (California), 234, 238 

Bamberg, N.C., 330 

Bank of England, 331 

Barbee, James, 45 

Barker, Joseph III, 135-7 

Barksdale, John, 152-3 

Barnett, Wally, 254 

Batchelder, Anne S., 158 

Beerman, Alan, 1 

Believe the Children, 240 

Benes, Richard, 203 

Benson, Paul, 353, 356, 365, 366 

Bentz, Bob, 237-8 

Bentz, Lois, 237-8 

Berkshire Hathaway, 148 

Berney, Melvin, 183 

Berry, John Stevens, 30-1, 122, 
182, 190, 194, 196,222, 293 

BETA, 329 

Betancourt, Ernesto, 380 

Bevel, Rev. James, 4, 222-3, 
241-3 

Billings, Montana, 336 

Billington, Michael, 295 

Black Democrats for McGovern, 
54 

Blair (Nebraska), 6, 211 

Blassingame, James, 371 

Bloods and Cryps, 240, 320, 323 

Bluebird Project, 328 

Bodies by God, 169 

Boggs*, Millie, 75-6 

Bohemian Grove, 326 

Bohle, Terry J., 199 

Bomberg, Nate, 38 

Bonacci, Paul, xvii-xviii, xxiv- 
xxv, 4, 100-5, 108, 111, 113- 
4, 118, 124-8, 138, 147-8, 
154, 167, 197,201,203-4, 
212-7,225-6,228-34,236-9, 
241-2,244-5, 248, 290-2, 
301-4,308,316,318,321, 
323, 326-30, 390, 394-6 

Boner, Loni, 78-9, 187,306 



Boner, Shawn, 250, 306, 317 

Boner, Troy, 69-74, 77-81, 84, 
100, 102, 108, 110, 113-4, 
116, 138, 186-90, 192-4,243, 
248, 250, 286, 292, 301, 305- 
19.390-1 

Bookout, John G, 158 

Boston (Massachusetts), 169 

Bovasso, Ken, 26, 227 

Bowman, Steve, 154 

Boy Scouts, 143, 157 

Boyle, Mike, 141 

Boys Club, 140, 157 

Boys Town, 8, 13-4, 34, 36, 57, 
69,72, 139, 150-7, 163, 176, 
200, 283-85, 287, 293 

Bradford, Coenen, and Ashford, 
135 

Bradford, Dana, 135 

Breiner, Dr., 48 

Brewton, Pete, 173 

British Foreign Office, 387 

Broer, David, 360-1, 364, 367 

Broer, Joanne, 367 

Broom, James Teddy, 74 

Brown, Frank, 29-30, 188,311 

Brown, Jerry, 271 

Bryan Memorial Hospital, 304 

Bryant, Ernest E., 164 

Buckey, Peggy McMartin, xx 

Buckey, Raymond, xx 

Buffett, Howard, 150, 159 

Buffett, Susie, 148-50 

Buffett, Warren E., xi, xv, 138, 
148-51, 159,270 

Warren Buffett Foundation, 148 

Bureau of Alcohol, Tobacco, and 
Firearms, 332, 342 

Burger, Warren, 175 

Burt County (Nebraska), 203 

Bush, George, xi, xv, xxiii, 12, 40, 
53, 94, 164-6, 169, 174-8, 
180,263,272,304, 321-3, 
325, 326, 380 

Bush, Neil, 173 



398 



INDEX 



Bush, Prescott, 180 
Byrne, Joseph, 137 
Byrne and Randall, P.e., 135, 137 

Cable-TV, 287-8 
Cairo (Nebraska), 117 
Calder, Sheila (see McGuire) 
California, xx, 50, 72-3, 75-6, 80, 

100, 102, 222, 234, 238-40, 

270, 320, 326, 330 
Canada, 234. 241 
Caniglia, Joe, 124. 236 
Caporaso. Giovanni. 241 
Caracorp, 3, 142, 188 
Caradori, Andrew (AJ.), xii, 2-4. 

187.221-3.250 
Caradori, Dick, 3 
Caradori, Gary, xii, xxiii, 1-4, 66- 

9, 75-7. 82, 86-8, 100. 102. 

106, 110-3. 115. 125, 131. 

136-8,141-3,156. 166. 177. 

183-9.191-7.200-1.215, 

220-3. 226-7. 240, 246-7, 

250,286, 301, 304. 305-313, 

321. 385. 390 
Caradori, Mary, 3-4.221-3 
Caradori, Sandie, 1.3. 186-88, 

222. 243, 311. 313 
Caradori, Sean. 187 
Carlson. Dennis. 25-6. 34-5, 57, 

183 
Carlson. Theodore. 72, 74, 77, 100. 

110 
Carmean.Trl (Chris), 15-6, 18-21, 

25-8, 35, 156. 183. 227 
Carmen, David. 174 
Carmen, Gerald. 174 
Carmen, Carmen and Hugel, 174-5 
Carpenter, Terry. 254, 257 
Carter, James, 356 
Casey, Michael, 110, 121-2, 168. 

184-5, 194 
Casey, William, 174-5, 178, 180, 

327 
Castro, Fidel, 385 



CBS-TV. 178,218,226 
Cedar County (Nebraska), 203 
Central Intelligence Agency, xi, 

xiii, 4, 59, 170-80, 253-4, 

277, 320, 322, 323, 324, 327- 

8. 342, 379-80, 385-6, 388 
Chaban-Delmas, Jacques. 380 
Chaitkin, Anton, 325 
Chambers. Ernie, 27, 35-7,53-4, 

56-8, 65. 110, 114, 117, 120- 

I, 129, 136. 139, 145, 166, 

181, 239, 254, 259 
Chesapeake Bay. 384 
Cheshire, Jimmy, 154-5 

Home Boy, 154-5 
Cheshire, Robert, 358, 360-4 
Chicago, 2-4. 12. 80. 108. 176. 

198, 201 
Chicago Tribune, xix 
Children's Civil Rights Committee. 

244 
Children's Defense Fund, xviii 
Chizek. Jerry. 88 
Christie Institute. 180 
Citizens' Fact-Finding Commission 

to Investigate Human Rights 

Violations in Nebraska. 241-2 
Citizens for America, 173-4, 322 
Citron. Peter. 71, 77, 92. 94-5. 

100. 108. 115. 124,283, 287, 

301, 308-9, 314 
Clark, Ramsey, 296 
Clatty. Robert. 282 
Clinton, Bill, 271, 388 
CNN. 278, 345, 383 
Cocozza Lubisco, Massimiliano, 

241 
Cohn, Roy E., 179 
Colby, William E., xi-xv, 4. 171. 

247-9. 253, 277. 300. 324-5, 

376, 377-389 
Colby, Sally Shelton, xi-xii, 388 
Cold War, 323-4 
Colorado, 103,231.233-4,263 
Collier, Peter, 380 



399 



THE FRANKLIN COVER-UP 



Comine, Lawrence Jr., 158 

Commercial Federal Savings and 
Loan, 130, 134-5 

Commonwealth Depositors' Com- 
mittee, 244 

Commonwealth Savings Company, 
39-44,47-8,51-2,60-1,63- 
4, 73, 92, 95, 250, 263-4, 
266, 268-70, 272. 289-90 

Communist Party, U.S.A., 296 

Compton, Jackie, 73 

ConAgra, 132, 134-6, 158 

Concerned Citizens for Responsible 
Government, 40, 42 

Concerned Parents, 1-2, 110, 113, 
121, 240, 327 

Congressional Black Caucus, 
298-9 

Connecticut Correctional Institute, 
xviii 

Connor, John, 338-40 

Conspiracy of Silence, 285-8, 378 

Consultants International, 179 

Consumer Services Organization, 
53, 134 

Copple family, 39, 44, 47 

Copple, Marvin, 41, 43 

Copple, Newt, 250 

Copple, S.B., 41-4, 51, 250 

CORDS Program, 394 

Corrigan, Judge, 88-9 

Cosentino, Bonnie, 121 

Coulter, FBI Agent, 195 

Council Bluffs (Iowa), 72, 78, 81, 
191,316 

Council for Minority Americans, 
174 

Covenant House, 180-1 

Creager, Robert, 30-1, 126-7, 197 

Credit Suisse, 174 

Crnkovich, Liz, 37 

Crooks, Lynn, 364, 366-7, 370 

Crowley, Aleister, xx 

Cult Awareness Network, 242 



Culver, Rick, 185,221, 306, 310, 

313 
Cutshall, Jill, 231 

Daily Telegraph, 388 

Dallas (Texas), 43, 54-5, 100, 103, 
164, 166, 265 

Daniels, LeGree, 165 

Daub, Hal, 135 

Daugherty, Robert H., 158 

Davidson, James Dale, 387 

Davis, Florence, 74-6 

Davis, James Martin, 226 

Days Inn Lakefront Motel (Chi- 
cago), 3 

DeCamp, Jennifer, 63-4, 168 

DeCamp, John, xi, xxiii, 47, 50, 
54-6,61-5,85-99,110,113- 
4, 118, 127, 141, 146-8, 164, 
166-7,170-2,181-2,201, 
214-5,226,230-1,244-6, 
252-272, 277-300, 305-9, 
317-18,323-25, 332-48, 
376-396 

DeCamp Memo, xxiii-xxiv, 85-97, 
99, 106-7 

Deep Backgrounder, 178 

Delman, Marc, 189, 309, 311-6, 
318 

DELTA, 329 

Demjanjuk, John, 296-7 

Densen-Gerber, Judianne, xvii, 4, 
126-7,204, 211-3, 217,229 

Denver (Colorado), 103, 173, 330 

Department of Social Services (see 
Nebraska) 

Derr, Jason, 138, 288 

Des Moines, 78-9, 100, 229, 232- 
4,330 

Des Moines Register, 229-30, 
233-4 

Deutsch, John, 320 

Diep, Lam Ngoc, 380 

Dillon, Special Agent, 199-200 



400 



INDEX 



Dinsdale, Roy, 158 

Dinsdale Brothers, 158 

Discovery Channel, 285-8, 378 

Dixon and Dixon, 73 

Dodge, N.P. II, 135 

N.P. Dodge Real Estate, 135 

Doe*, Jane (grand jury witness), 
118, 120-1, 123 

Domina, David, 47-8 

Dorr,Robert, 90-1, 99, 217, 242 

Dougherty, Terry, 119, 121-3 

Douglas, Paul, 47-8, 51, 259 

Douglas County (Nebraska), xvii, 
36, 88-9 
Attorney's Office, 4,36-7,74, 

123-5, 189, 201, 239 
Grand Jury, 4, 106-128, 146, 
148,184,189-90,196-7, 
201, 214, 222, 224, 228, 
243, 246, 271-2, 300-1, 
305-6,309-11,313-4, 
317-8 

Dream Boys, 169 

Dresden, 330 

Drexel, Burnham, Lambert, 50 

Drug Enforcement Agency, 138 

Dulles, Allen, 331 

Durham, Charles W., 158 

Durham, Steven, 158 

Durham Resources, 158 

Dymally, Mervyn, 297-8 

East Germany, 330 
Eaton, Tinstman, Druhner, 158 
Editor and Publisher, 151 
Eisenhower, Dwight D., 178 
Eisenstatt, Leo, 135, 137 
Elkhorn (Nebraska), 101 
Ellena, Frank Eugene, 336-7 
Emilio (Last name unknown), 232- 

4,236 
Erickson, Sederstrom, Leigh, Eisen- 
statt, Johnson, Kinnamon, 
135, 137-8 



ESP, 324 

Esping, Perry E., 158 

Eureka, Montana, 336 

European Citizens' Initiative to Pro- 

ect Life and Human Dignity, 

241 
Evans, Mary Kay, 246 
Evans-Pritchard, Ambrose, 388-9 
Evansville (Illinois), xix 
Executive Intelligence Review, xx, 

241,325 
Executive Life Insurance Co., 50 
Executone Company, I 
Exon, U. ; 63-4, 144, 261 

Farmers National Co., 159 

Paul, Scott, 359, 361, 362-4, 367, 
370, 375 

Faul, Shauna, 361, 367 

Federal American Immigration Re- 
form, 149 

Federal Bureau of Investigation, 
xix-xxi, xxv, 3, 37, 53, 60-1, 
85-6,88, 121, 152, 170, 182- 
200,211,218,220,227-8, 
241-2,251, 254, 284, 291-4, 
296, 297, 301, 304, 306, 309- 
14,316,318,325,327,332, 
342, 343, 371 

Federal Witness Protection Pro- 
gram, 292, 306 

Fenner, Robert, 96, 170-2, 197, 
247 

Ferraro, Geraldine, 63 

Fiala, Fr., 200 

Fifth Amendment, 391 

Financial Advisory Group, 60, 172 

Finch, Deward, 9, 13, 20, 23, 67, 
72, 77, 83, 202 

First Amendment, 333, 352 

First Data Resources, 158 

First National Bank of Lincoln, 45, 
159, 259 

First National Bank of Omaha, 134 



401 



THE FRANKLIN COVER-UP 



FirsTier Bank, 45, 138, 145, 150, 
158-9, 259, 288-9 

FirsTier Financial, Inc., 134, 145, 
158-9 

Fisher, Dennis, 364, 370 

Fitzgerald, William A., 130, 134 

Fitzwater, Marlin, 39 

Flanagan, Michael, 116, 122, 
146-8 

Flanery, James Allen, 58, 170, 322 

Fletcher, Philip B., 158 

Forbes, Steve, 149 

Forbes magazine, 149,231 

Ford, Gerald, 253, 380 

Fort Bragg (N.C.), 330 

Fort Calhoun (Nebraska), 5, 9, 13, 
72,75 

Fort Defiance (Va.), 330 

Fort Riley (Ks.), 330 

Fortune magazine, 148 

48 Hours, 244, 315-316 

Foster Care Review Board (see Ne- 
braska) 

Foxall, Pitmon, 28 

Franklin, Benjamin, xxv 

Franklin Committee (see Nebraska 
Legislature) 

Franklin Community Federal Credit 
Union, xxi, xxiii, 5, 8, 51, 53, 
57, 59-61, 68-9, 73, 77, 92- 
3,96, 107-8, 134-6, 138-9, 
143, 145-6, 154-5, 160-3, 
165, 169, 173, 181, 184, 189, 
245, 288-9, 300, 323 

Franklin Cover-Up, The, 277-9, 
280, 285, 325, 326, 332, 378 

Frederick Douglass Republican 
Council, Nebraska, 165 

Fredricks, Gary, 367-9 

Freedom of Information Act, 288, 
295, 296, 298 

Freemen, 332-3 

Fremont (Nebraska), 6, 211 

French Cafe, 71-2, 113, 131, 150 

Friedman, Hirsch, 297-8 



Gage, Kelton, 236 

GAMMA, 329 

Gates, Robert, 388 

Gentlemen's Quarterly, 137, 149 

George Town Club, 179-80 

Georgia, 251 

Georgiu*, Margo, 15-7, 24, 31 

Germany, 222, 229, 241, 330 

Gilbert, Ron, 80, 82 

Gillespie, Carol, 155 

Gillespie, Doyle, 155 

Gilliam, DuBois, 55 

Ginter, Leonard, 370-2 

Ginter, Norma, 370, 372 

Gittins, Jody, 189 

Globe Neon, 61 

Goc, John, 90 

Godfather's Pizza, 142 

Goldsmith, James, 380 

Goodrich, Lt., 28, 183 

Gosch, John Sr., 230-1, 291, 330 

Gosch, Johnny, 229-34, 291-2, 

330 
Gosch, Noreen, 230-1, 233, 291 
Gottschalk, John, 51, 270-1 
Graf, Darrell, 360, 361-2 
Grand Island (Nebraska), 40, 100 
Gray, Robert Keith, 178-80 
Gray and Company, 178, 180 
Gregg, Donald, 169 
Gregory, Joanie, 167, 195-6 
Gritz, Bo, 342 
Groth, A. Nicholas, xviii 
Gugas, Chris, 112 
Guatemala, 180 
Gunderson, Ted, xx-xxi, 211, 343, 

346 

Haberman, Rex, 54-5 
Haiti,59 

Hallberg, Kirstin, 27, 33-4, 36, 58, 

152-3 
Hansel, Robert, 142 
Harper, Charles (Mike), 132-4 
Harris, Sen., 41 



402 



INDEX 



Hart, Adrienne, 27 
Hart, Jack, 268 
Hart, James C. Jr., 134 
Harvey, Mary Jane, 156, 173 
Harvey, Tom, 173 
Hastreiter, E.M., 203 
Healy, James, 135 
Heavican, Mike, 64 
Hebenstreit, Joe, 188 
Heidelberg, Hoppi, 343-4 
Henry, Fr. Pat, 200 
Higgins, Marge, 46 
Hill and Knowlton, 178, 180 
Hinton, David, 135 
Hobbs, Edward, 181 
Hoch, Michael, 17-8,27, 101 
Hoffman Estates (111.), 345 
Hoig, Bob, 50 
Hoppner, Bill, 270-1 
Hornung, Rick, 168 
Horowitz, David, 380 
Hougan, Jim, 179 

Secret Agenda, 1 79 
Houston (Texas), 100 
Houston Post, 173 
Howard, Clare, 81, 250-1 
Howe, Woody, 140 
Howland, William, 34-5, 109, 

183 
Hudson, Henry, 376 
Hugel, Max, 174 
Hughes, David, 113 
Humphrey, Hubert (Skip) Jr., 236 
Hupp, Msgr. Robert, 155, 283-5 



Illinois, 12, 80, 108, 176, 198, 

201 
Immanuel Hospital, 24 
Industrial Chemical Laboratories, 

159 
Internal Revenue Service, 53, 295, 

351, 357-8 
Iowa, 72, 78-9, 81, 206, 229-34, 

251 



Iran-Contra scandal, 96, 169-75, 

180, 247, 270, 320, 323, 347 
Itzen, Edward H, 222 

Jacobi, Dale Martin, 336-7 

Jamaica, 

James, Cajun, 337 

James, Harold, 323 

Jamrog, Jerome, 135 

Johnson, Kent, 51, 61 

Johnson, Mark, 330 

Johnson, Yard, 49 

Jones, Buzz, 336-9 

Jordan (Minnesota), 234-7 

Joyce, Jerry, 45 

Justice Department (see U.S.) 

Kahl, Gordon, 278, 294, 348-76 

Kahl, Joan, 354, 355, 357 

Kahl, Yorie, 348-52, 359-67, 371, 

375-6 
KAM Airlines, 103, 124 
Kansas City (Missouri), 34, 58, 73, 

93, 100, 124 
Kansas City Star, 65, 93 
Kapp, Bradley, 360, 362, 363 
Karnes, David, 144 
Karpis, Alvin, 38 
Keeler Polygraph Institute, 286 
Kenefick, John, 146, 158, 163 
Kennedy, John A. and Associates, 

345 
Kennedy, John E, 64, 272 
Kern County (California), 238 
Kerrey, Robert, xi, xv, 38-52, 60, 

73, 252-273, 281, 290 
Kerry, John, 322 
Kessler, Frank, 74 
KETV (Channel 7), 29, 114, 188 
KGB, 277, 297 
Peter Kiewit and Sons Corporation, 

132, 134, 144-5, 158, 161, 

163,65 
Kiewit Foundation, 130, 161 
King, Alice, 12,36, 149-50, 174 



403 



THE FRANKLIN COVER-UP 



King, Danny, 70, 72-4, 80-4, 100, 
102, 108, 110-1, 114, 116, 
138,186,192,248,318 

King, Lawrence E. (Larry), xi, 

xvii, xxi-xxiii, 5, 9-14, 16-8, 
20-1,23-6, 28-34, 36, 52, 
54-61,67,69-74,76-81,83, 
87,92, 100-11, 123, 125, 
127-31,134,136-9,141-2, 
145-6, 148-58, 160-3, 164- 
78, 181, 195, 197, 199-203, 
217, 224-225, 239-40, 245, 
248, 250-1, 283, 287, 288-9, 
300, 308-9, 314, 316, 318-9, 
321, 322, 323, 326-7, 395 

King, Martin Luther Jr., 241 

King, Prince, 12, 168 

King Horse, 23, 74, 110-1, 202 

Kirchner, Robert, 51, 60 

Kirk, Arthur, 117 

Kirk, Dee, 117 

Kissinger, Henry, 296, 380 

KKAR radio, 28-9, 140, 173 

Kleier, Larry, 238 

Knox County (Nebraska), 203 

Komer, Robert, 380 

Kopf, Richard G., 52, 166, 184, 
303-4 

Koppel, Ted, 278 

Korean War, 324 

Kotok, C. David, 40, 257, 272 

Kupres, Alan, 154 

Kutak, Rock, and Huie, 135 

Labedz, Bernice, 83, 128, 185, 
189, 194,221,261-3, 273, 
312, 316 
LaFountain, Jerry, 367-9 
Lahners, Ron, 199 
Lamberty, Louis, 135 
Lamenga, Carol, 361-2, 369 
Lamenga, Mark, 361-2, 369 
Lancaster County (Nebraska), 203 
Lanning, Kenneth, xix-xx 
Lanphier, Trish, 2, 113 



LaRouche, Lyndon H., 241-2, 

295-6 
Larry (Last name unknown), 70, 

72-4, 83, 101, 110-1, 202 
Las Vegas (Nevada), 103, 105, 

222, 234, 326 
Lauritzen, Bruce, 134 
LaVey, Anton, xx 
Leahy, Eugene, 144 
Leavenworth Prison, 352, 353 
Lee County (Illinois), 2 
Lee, Tom, 373 
Levco, Stanley, xix 
Lewis, Mike, 251 
Liddy, G. Gordon, 231 
Lincoln (Nebraska), 2,40-1,44-5, 

48-9,51,59,61, 100,231 
Lincoln Journal, 3, 36, 50-1, 58, 

89-92, 97, 117, 139, 143, 

145,149,177,183,256,262, 

270 
Lincoln Police Department, 61, 64 
Lincoln Star, 42, 50, 253 
Linquist, Lloyd, 75-6 
Lontor, Charles, 241 
Lopez, Amando Gerry, 336-7 
Los Angeles (California), xx, 72-3, 

198, 240, 320, 323, 381 
Louisville State Park, 142 
Lowe, Jerry, 21, 51, 59-61, 65-6, 

122, 137, 142, 152-3, 156, 

170, 173, 176, 184, 240 
Luedtke, Roland, 65, 259 
Lynch, Dan, 83, 124, 138, 185, 

196-7,221 
Lyons-Barrett, Mary, 1, 100 



Maas, Peter, 179 
Manhunt, 1 79 
MacAuley, Robert, 180-1 
Madison County (Nebraska), 203 
Maenner, John R., 159 
Maenner Co., 159 
Mahoney, Eugene, 71, 110, 138, 



404 



INDEX 



140-1,143-44,308-9,314, 

316, 395 
Malek, Joe, 251 
Man to Man, 169 
Marchetti, Victor, 179 
Martin, Eugene, 233 
Marvin, Samuel, 135 
Masonic, 353, 357, 365 
Massachusetts Mutual Insurance 

Co., 135-7 
Massengale, Martin A., 159 
Mathews, Gene, 372-3 
Mattson, Lloyd H., 159 
Max Bar, 16, 18, 20, 74, 78-9, 

136, 150 
McArthur*, Sally, 5, 75 
McArthur*, Sean, 5, 10,75 
McArthur*, Steve, 5, 75 
McAuley, Leslie, 135 
McFarland, Sen., 65 
McFarlane, Robert, 180 
McGuire, Sheila, 131 
McKenney, Thomas, 72, 74, 110 
McMartin Preschool, xx 
McVeigh, Timothy, 343-4, 345, 

347 
Mead, Beverly, 118, 126-7 
Medina shoot-out, 348, 349, 350, 

358, 359-64, 371, 374 
Meese, Edwin, 175 
Melville, Herman, 279; Moby Dick, 

279; "Billy Budd," 390, 

392-3 
Mendenhall, Frances, 240, 243 
Menks, Astrid, 150 
Metropolitan magazine, 129-30, 

175,327 
Mexico, 330 
Miami (Florida), 100 
Midlands magazine, 139 
Militia of Montana (MOM), 332- 

42, 380, 383 
MilitiaJPatriot Movement, 380-4 
Miller, Donald, 135 
Miller, John, 47 



Miller, Kent, 9, 13 
Minneapolis Star-Tribune, 38, 235 
Minnesota, 38, 100,231, 233-8 
Minton, John D., 159 
Missing Children's Foundation, 

231 
Missouri, 34, 58, 73, 93, 100, 124, 

206 
MK-Ultra, 328 

Monarch Project, 303, 323-31 
Montana Seven, 334-41 
Montana State Legislature, 333, 

334 
Moody, Randy, 49 
Moore, Barbara, 134 
Moore, Thomas N., 159 
Moran, Gerald, 125, 218, 225, 304, 

313 
Morgan, P.J., 72, 80, 82, 110, 133, 

144, 254 
Morino, Bob, 102 
Morris, Kathleen, 234-5 
Mott, Mickey, 185, 188, 192, 197, 

306,310, 312, 313 
Muir, Ken, 356-7, 360, 362, 365, 

368 
Mullen, Judge Patrick, 225 
Multiple Personality Disorder, 126, 

214,217,326-9 
Murphy, James M., 201 
Murray State Bank, 135 
MusselShell County, 333, 340 
Mutual of Omaha, 134, 159-60, 

163 

NAMBLA,330 

National Bank of Commerce, 43, 
48 

National Black Caucus of State 
Legislators, 298-9 

National Black Republican Coun- 
cil, xxi, 164-5, 176 

National Child Abuse Defense and 
Resource Center, xxiii 

National Credit Union Administra- 



405 



THE FRANKLIN COVER-UP 



tion (NCUA), 53, 55, 60-1, 
96, 170-2, 181, 197,247, 
288-9 
National Endowment for Democ- 
racy, 175 
National Narcotics Border Interdic- 
tion System, 321 
National Public Radio, 149 
National Transportation Safety 

Board, 4, 201 
Naylor, Kirk, 51, 59, 65 
Nazis, 326-7, 331 
NEBCO Inc., 158 
Nebe, R.I., 189 
Nebraska, State of 

Attorney General's Office, 35, 

48, 116 
Banking Department, 46, 

48 
Claims Board, 289-90 
Department of Social Services, 

5-8, 14, 76, 195 

Foster Care Review Board, 24- 
5, 27, 52, 54, 57-8, 

60, 109, 122, 183 
Legislature, xxii, 40, 48, 53, 56, 
91, 133, 136, 219, 221, 226, 
244, 252-5, 257, 259-61, 
264-5, 267, 289-90, 395 
Banking, Commerce and Insur- 
ance Committee, 44, 46- 
7, 50, 52, 54, 56, 
257, 266 

Executive Board, 24-6, 34, 
36-7, 56-8, 129, 136, 
152,219,239 
Franklin Committee, xxii, 1, 
4, 21, 28, 30, 35, 51, 59- 
62, 65-6, 68, 83, 91, 95- 
6, 110, 114-5, 118, 124, 
127-9, 131, 146, 164, 
171, 181-6, 190, 
197,211,217-21,240, 
242,250,293, 301, 310, 
312, 377 



Liquor Control Commission, 47 
Parole Board, 244-5 
Senate (see Legislature) 
Small Business Development Au- 
thority, 48 
State Patrol, 8, 36, 60, 62, 152, 

195-6, 203, 221-2, 227 
Supreme Court, 289-90, 300, 
391 

Nebraska Investment Finance Au- 
thority (NIFA), 40, 49-50, 
269 

Nebraska Leadership Conference, 
223, 243 

Nebraska Observer, 120, 123,240, 
243-4 

Nebraska State Bar Association, 
90-1, 97-8 

Nebraska Wildlife Federation, 140 

Negative Population Growth, 
148-9 

Nelson, Rusty, 15-8,31-2,67,71, 
76 

Nelson, W. Don, 264 

Nesbitt, Arnold, 135-6 

New Federalist, 325 

New Hampshire, 271 

New Orleans (Louisiana), 54, 164, 
167 

New York City, 12,229 

New York State Police, 4 

New York Times, xviii, xxii 

Nguyen Ngoc Tuy, 380 

Nicaragua, 59, 170, 174, 320, 322 

Nichols, Terry, 343-4, 347 

Nightline, 278 

Nixon, Richard M., 165, 253, 268 

Norfolk (Nebraska), 231 

Norman, Montagu, 331 

North Carolina State Legislature, 
272 

North, Oliver, 180,321, 

322 

North American Man-Boy Love As- 
sociation (NAMBLA), 229 



406 



INDEX 



Northern Natural Gas, 135 
Northwest Bell, 135, 159 
Noxon, Montana, 342 
Nuclear Test Ban Treaty, 379 
Nuernberger, W.W., 64 

Oklahoma City bombing, 277, 332, 
343-7,380, 384 

Offutt Air Base, 175, 327-30 

O'Hara, Nicholas, 85-6, 88, 182- 
3, 198,241, 251, 304 

Omaha (Nebraska), xvii, xxi, 1,8- 
9, 13, 15-6, 18,22, 25, 28- 
30, 34, 37, 51, 53-4, 62, 67- 
8, 72, 74, 81, 85, 88, 92-3, 
96, 109, III, 116-7, 126, 
129-163,166, 175-7,189, 
192, 199-200,230-1,240, 
242, 244, 246-8, 250-1, 254, 
257-8, 261, 270, 293 

Omaha Catholic Archdiocese, 
284-5 

Omaha Children's Home, 75 

Omaha Girls Club, 10-1, 19,21-2, 
57, 139-40, 152, 156-7 

Omaha Metro Update, 39-40, 46- 
7,49-50, 114, 121 

Omaha Ministerial Alliance, 220 

Omaha National Bank, 135, 258-9, 
261 

Omaha National Corporation, 45, 
145, 159 

Omaha Police Department, 15, 18, 
23,25-7,29-30, 33, 35, 60, 
101, 109, 126, 128, 182-3, 
195-6,227,239, 241,251, 
395 

Omaha Public Power District, 5, 
144 

Omaha Star, 164 

Omaha World-Herald, xvii, xix, 
xxiii, 2, 50-1,58,63, 

66,68,87,89-90,92,94-6, 
99,106,115-6,122,124,130, 
133, 135-6, 138-40, 144, 150, 



154,166,169-70,173,175, 

177,183,188,217-8,221-2, 

226-227,231-2,240,242-5, 

247,256-7,262-3,270-2, 

280,288-9,291,300,303, 

322,394 

OMEGA, 329 

Operation Babylift, 395 

Operation Fruehmenschen, 297-9 

Ormiston, Karen J., 3, 9, 67, 69,82, 
112,124,154,187-8,197, 
227-228 

Orpheum Tower, 18 

Orr, Kay, 33, 35, 144, 165-6, 268 

Owen, Aaron, 251 

Owen, Alisha Jahn, xvii-xviii, 

xxii, xxv, 4, 9, 52, 67-74, 76- 
77, 80-2, 84-5, 100-2, 108, 
118-20, 124-5, 131, 
141, 154, 184-5, 190-1, 193- 
4,197,217-9,221,224-227, 
229,239, 243, 248, 251,291, 
293, 300, 306-7, 313, 316-8, 
321, 390-3, 394, 396 

Owen, Alvin, 185 

Owen, Amanda, 218 

Owen, Donna, 185 

Owen, Rob, 180 

Pankonon, John, 185 
Paris Peace Talks, 380 
Park, Tong Sun, 179-80 
Parker*, Brenda, 15-7,24,67 
Parker, Charlie, 183 
Parker, David R., 159 
Partsch, Frank, 257 
Patterson* children (see Webb) 
Peltier, Leonard, 366 
Pennsylvania Legislative Black 

Caucus, 321 
People magazine, 235, 237, 272 
Perkins, Charles, 180 
Perpich, Rudy, 236 
Peter, Fr. Val, 37, 152-3, 155 
Petersen, Donald, 145 



407 



THE FRANKLIN COVER-UP 



Phillips, Officer, 195 
Phipps-Yonas, Susan, 235 
Phoenix Program, 277, 379 
Phoenix Sign Corp., 61 
Pike, Douglas, 380 
Planned Parenthood, 148 
Plemmons, Bill, 329 
Points, John, 81 
Population Council, 148 
Population Institute, 148 
Power, Kenneth D., 130, 159 
Powers*, Mark, 69-70, 138 
Prairie Life, 47, 49-51 
Progressive magazine, 133 
Prokop, Robert, 246-7 
Pronto, 241 

Queen, John, 48, 51, 60-1 
Quinlan, Thomas C, 159 
Quist, David, 224 

Ramsey, William E., 155 
Randall, Casey, 8 
Randall, Gary, 8, 137 
Rasmussen, Dean, 47, 50 
Rasmussen, Jessie, 47, 50 
Reader's Digest, xx 
Reagan, Maureen, 55, 164 
Reagan, Ronald, xi-xxiii, 54, 164- 

5,169,174,178,326,356-7 
Rees, John R., 331 
Rees-Mogg, William, 387-8 
Remmers, Sen., 57 
Reno, Janet, 296, 378 
Rentfro, Robert, 45 
Republican Party, xxi, 17, 55, 63, 

102, 164, 323 
National Conventions, xxi-xxii, 
14,54-5, 128, 138, 164, 
167, 176, 254, 264-5 
Reuer, Lonny, 369-70 
Rexford, Montana, 336 
Richard Young Hospital, 18, 20, 

26-7,33-5, 37, 57, 202 
Rinehart, W.M., 351 



Rismiller, David A., 134 

Ritter, Fr. Bruce, 180 

Rivera, Geraldo, 204, 240 

R-Lynn, Inc., 135 

Robinson, Dana Saylor, 41 

Robinson, John, 48 

Rochon, Donald, 198-200, 293 

Rogers, Charlie, 125,251 

Rogers, Joel, 155, 162-3 

Rosenthal, Henry, 119. 128, 191-2, 

227 
Roskens, Ronald, xi, 63, 177 
Roth, Dick, 84, 88-9, 226 
Rothery, Carolyn, 135, 137 
Roundup, Montana, 332, 336, 341 
Ruby Ridge, 278, 294, 375 
Rud, Alvin, 235 
Rud, James, 235-8 
Rud, Rosemary, 235 
Rutledge, Kathleen, 89-91, 97, 99 
Ryan, Dan, 251 
Ryan, Jim, 258, 260-1 

Sacramento (California), 103 

St. Louis (Missouri), 100 

St. Paul (Minnesota), 38, 116, 235 

St. Paul Pioneer Press, 38 

Salomon Brothers, xi, 148, 270 

San Jose Mercury, 320 

Santoli, AI, 380 

Sarpy County (Nebraska), 203, 239 

Savoy Hotel, 78-9 

Sawyer, Mary, 298; Harassment of 
Black Elected Officials: Ten 
Years Later, 298 

Schiller Institute, 241, 298 

Schmit, Loran, xxiv, 1-3, 37. 46, 
53-4,56-8,61-2,65-6, 83- 
7,96, 110-1, 115, 118, 122, 
127-9,138,164,171,182, 
185,187-9,194, 196-7,201, 
219-21, 223, 226-227, 303, 
311-3,316,322,377 

Schnabel, Steven, 360, 362, 363 

Schreiber, Flora Rheta, 126 



408 



INDEX 



Sybil, 126 

Scott, Eugene, 202 

Scott, Gerry, 234 

Scott, Walter Jr., 132, 134, 144-5, 

158 
Scott, Sue, 134 
Scribante, A.J., 159 
Seacrest, Joseph, 143, 177, 270 
Secret Service, 166 
Seltzer, Noel, 139, 145, 194 
Sessions, William, 293 
Sex Information and Education 

Council, 148-9 
Shanahan, Dave, 153 
Shea, Michael, 235 
Sheehan, Daniel, 180, 283-5 
Sheftel, Yorarn, 297 
Sherrets, Steven, 28 
Shilling, Kay, 26 
Shoppers Fair, 44-5 
Sigler, Robert, 123-5, 304 
Silverado Savings and Loan, 173 
Simon, Jean-Marie, 180 
Sioux City (Iowa), 124, 197 
Sixth Court of Appeals, 297 
60 Minutes, 178 
Skoleski, Bill, 28, 251 
Skutt, Thomas J., 134 
Skutt, V.J., 144, 159-60, 163 
Smith*, Jackie, 22, 74 
Smith*, Loretta, 18-24,26-9, 33, 

35-7, 57, 60, 67, 74, 89-91, 

103, 109-10, 153, 156, 175, 

201-2, 227, 240, 251 
Smith, William C, 158-9 
Sogard, Warren, 366 
Sorenson, Kathleen, 6, 9, 152, 156, 

204-211, 240, 251 
Sorenson, Ron, 6 
Soto, Jose J., 155 
Southfork Ranch, 55, 128, 164, 

166-7 
Spain, 173 

Sparrow, Paul, 291-2 
Spence, 169, 326, 330 



Spire, Robert, 33-4, 36, 45-7, 58, 

60, 83, 109, 144, 151 
Starlite Motel, 77 
Staskiewicz, Ronald, 123 
State Security Savings, 39-41, 43- 

5, 64, 92, 95, 263-4, 266-9, 

270,272 
Stephens, Roy, 228, 231-4, 236-7, 

241 
Stem, Gabriella, 140 
Stitt, Carol, 24, 27, 33-7, 52, 57- 

8,60, 109, 122, 151-2, 170 
Stockdale, James, 380 
Stoner, Ken, 27 
Storz, Robert H., 159 
Storz Broadcasting Co., 159 
Stramer, Paul D., 336 
Strategic Air Command, 175, 327 
Strategic Investment, 387-8 
Street, John, 321 
Stuart, Jim, 43, 48 
Summers, Harry, Jr., 380 
Sun newspaper, 151 
Switzer, Leroy, 336 
Switzerland, 172-4 

Tampa (Florida), 100 

Tavistock Institute. 331 

T4 Bureau, 331 

Terpil, Frank, 179 

Thalken, Thomas, 183, 190-1, 198, 

304 
Theosophy, 331 
Thiessen, William, 142 
Thill, Richard, 203 
Thomas*, Brandt, 11, 155, 176 
Thomas, L.B., 135 
Thompson, Herbert, 203 
Thompson, Hunter, 105 
Thone, Charles, 255, 258-60, 262, 

288 
Thorstadt, David, 229 
Times of London, 387-8 
Tinley, Hugh L., 159 
Tinstman, Dale C, 158 



409 



THE FRANKLIN COVER UP 



Todd, Olivier, 388 

Tooley, Jane F., 6, 8 

Toronto (Canada), 234 

Tran Van Tong, 380 

Traub, James, 137, 149 

Travel Lodge Inn, 79 

Treblinka, 297 

Tripp, Patrick, 8-9, 13-4 

Trochman, John, 336 

Tucker, Curtis, 251 

Tucker, Harmon, 251 

Twin Towers, 15, 17.69-70. 72, 

77-9, 101-2 
Tyner, Neal E., 158 

Ukrainian Political Action Commit- 
tee. 241 
Unclassified. 1 74 

Union Pacific Foundation, 146, 162 
Union Pacific Railroad. 80. 132, 
134-6, 138-9,146-8, 151, 
158-9 
United Nations, 330 
U.S. Book Co., 158 

U.S. Constitution. 346. 349 
U.S. Department of Justice, 109, 

182,294-298,378 
U.S. Department of State. 177 
U.S. District Court (N.D.), 348-9, 

358. 364-70 
U.S. District Court (Western Divi- 
sion of Texas), 351 
U.S. Federal Reserve System, 350 
U.S. Government (see Agency for 
International Development, Bu- 
reau of Alcohol, Tobacco, and 
Firearms, Central Intelligence 
Agency, Drug Enforcement 
Agency, Federal Bureau of In- 
vestigation. Federal Witness 
Protection Program, Internal 
Revenue Service, National 
Credit Union Administration, 
National Endowment for 
mocracy, National Narcotics 



Border Interdiction System, 
National Transportation Safety 
Board, Secret Service, Strate- 
gic Air Command, U.S. De- 
partment of Justice, U.S. De- 
partment of State, U.S. House 
of Representatives, U.S. Joint 
Chiefs of Staff, U.S. Senate) 

U.S. House of Representatives 
Banking Committee, 173, 297-8 

U.S. Joint Chiefs of Staff, 330, 379 

U.S. Senate, 63. 267-9, 275, 287, 
379 
Judiciary Committee, 375 

US West Communications. 130 

University of Nebraska, 135. 159. 
177, 203, 246, 255, 269 

USA Today, 383 

Uta Halee Home for Girls, 24, 34. 
157 

Valley Green Trailer Park, 235, 

237 
Valmont Industries, 158-9 
Van De Kamp, John, 238 
Van Pelt, Samuel, 116-8, 121-3. 

125 
Vann, John Paul, 253 
Van Sickle, Bruce, 353, 356, 358 
Versaw, Maryann, 318 
Vietnam, 252-6, 265, 267, 269, 

274-5, 378-80, 386, 389 
Vietnam War, 378-80, 394-5 
Village Voice, xviii, 139, 168, 180 
Virginia, 238 
ViTal Resources, 159 
Vlahoulis, Thomas, 35-7, 176, 183 
Volcker, Paul, 43 
Vuchetich, Pamela, 184-5, 192-3 

Waco, Texas, 278, 294 

Wade, Bill, 371 

Wadman, Robert, 25-6, 28-32, 
58-60, 68-72, 74, 77, 80-82, 
85-8,92,100-1,110,112-3, 



410 



INDEX 



120, 127, 129, 142, 182-3, 
198,218,221, 225-226, 239- 
40,281-3, 293,304, 308, 
323, 327 

Wahl, Gerry, 327 

Wall Street Journal, 140, 149-50 

Wallin, Lamont, 135 

Walsh, Michael H., 132, 134, 147, 
151, 158 

Walters, Julie, 8-10, 12-4,57-8, 
130, 152-3, 155, 176 

Walton, Don, 253-4 

Warin, Ed, 302 

Warner, Jerome, 83 

Warren, Harold "Bud," 356-7 

Washington County (Nebraska), 5- 

6, 8-9, 13-4, 108 
Sheriffs Office, 5-6 

Washington, D.C., 3, 12, 17,60, 
63, 100-2, 108, 112, 168-81, 
201,317, 326, 385 

Washington Post, 148-49, 202-3 

Washington Times, 169, 174,326 

Waters, Maxine, 320,323 

Wayne, Lawrence, 68 

Weaver, Randy, 294 

Webb, Barbara, 5-6, 8-11, 13-4, 
75-6, 137, 139, 150, 195, 
204,251 

Webb, Cornelia (Nelly) Patterson*, 
6-12, 14, 19-20,33-4,57, 
60, 67, 108, 152, 154-6, 175- 

7, 197,204, 224, 251 
Webb, Gary, 320 

Webb, Jarrett, 5-11, 14,75-6, 108, 
134, 137, 139, 195, 204, 224, 
251 

Webb, Joey Patterson*, 5, 10-11 

Webb, Kimberly Patterson*, 6, 8- 
11, 13-4, 19-20, 67, 152, 
154,156,176,197,204,251 

Webb, Kendra Patterson*, 7, 34, 
167 

Webb, Michael Patterson*, 6-7 



Webster, William, 296 

WECT-TV, 281-2 

Wegner, Vern, 364 

Wells Fargo Bank, 148 

Welsh, William F. II, 159 

West, Gary, 20, 74, 136 

West, Peggy*, 20, 74 

Westin Crown Center Hotel, 93 

Wetterling, Jacob, 233 

Whinnery, Kent, 30 

Whitehead, Milton E., 158 

Whitehead Oil Co., 158 

Whittlesey, Faith, 174 

Widiker, Herman, 357 

Wigglesworth, Carl, 360, 362-3, 
365-6 

Will, George, 380 

Williams, Burrell, 35, 57, 152 

Williams, Lindsey, 117 

Wilson, Edwin, 179-80 

Winger, Debra, 260, 265 

Wolforth, Dale, 135 

Woodmen of the World Life Insur- 
ance Co., 80, 158 

Woods, John, 258-61, 269 

World Trade Center bombing, 345 

Worster, Reuben, 40, 48, 244 

Wounded Knee, N.D., 366 

Wright, William F., 39-47, 49, 51, 
263-4, 263, 267-8, 270, 272 

Wright, Rembolt, and Ludke, 42, 
46-7 

Wylie, Bill, 141 

Yanney, Michael B., 134, 144, 158 
YNR Airlines, 103, 197 
Yorkshire-TV, 285-8, 290, 301, 
378 

Zahn, George, 222 
Zepp-LaRouche, Helga, 241 
Ziegenbein, Lyn Wallin, 130 
Zeilinger, John S., 135 
Zorinsky, Edward, 261 



411 



Franklin 
Cover-up 



The shut-down of Omaha, Nebraska's 
rill Franklin Community Federal Credit 

X J.1.C Union, raided by federal agencies in 

November 1988, sent shock waves all 
the way to Washington, D.C. $40 mil- 
lion was missing . The credit union 's 
manager: Republican Party activist 
Lawrence E. "Larry" King, Jr., behind 
whose rise to fame and riches stood powerful figures in Nebraska 
politics and business, and in the nation's capital. 

In the face of opposition from local and state law enforcement, from 
the FBI, and from the powerful Omaha World-Herald newspaper, a 
special Franklin committee of the Nebraska Legislature launched its 
own probe. What looked like a financial swindle, soon exploded into a 
hideous tale of drugs, Iran-Contra money-laundering, a nationwide 
child abuse ring, and ritual murder. 

Nineteen months later, the legislative committee's chief investigator 
died - suddenly, and violently, like more than a dozen other people 
linked to the Franklin case. 

Author John DeCamp knows the Franklin scandal from the inside. 
In 1990, his "DeCamp memo" first publicly named the alleged high- 
ranking abusers. Today, he is attorney for two of the abuse victims. 

Using documentation never before made public, DeCamp lays bare 
not only the crimes , but the cover-up- a textbook case of how dangerous 
the corruption of institutions of government, and the press, can be. In its 
sweep and in what it portends for the nation, the Franklin cover-up fol- 
lowed the ugly precedent of the Warren Commission. 




During 16 years in office, former state Senator John 
DeCamp was cited, even by his enemies at the World- 
Herald, as one of the most effective legislators in 
Nebraska history. A highly decorated Vietnam War 
veteran, in 1975 he initiated Operation Baby Lift, 
which evacuated 2.800 oiphaned Vietnamese chil- 
dren. He practices law in Lincoln, Nebraska, is mar- 
ried, and is the father of four children . 



ISBN 0-9632 158-0-9 



$12.95 



ISBN 0-9632158-0-9 
90000 



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Senator John W. DeCamp 



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